The Toronto Stock Exchange’s main index closed lower on Thursday as natural resource shares were sideswiped by another sharp drop in oil prices.

The S&P/TSX composite index closed down 43.55 points, or 0.32%, at 13,460.25.

But the losses were concentrated as just three of the 10 main sectors ended lower.

The heavyweight energy group dropped 3.25% and the price of oil continued its slide. Oil fell by US$5.31 to below US$129.29 a barrel amid worries over dampening demand in the United States, as well as easing tensions between Iran and the West.

In Toronto, Nexen Inc. slumped after the oil producer posted a disappointing quarterly profit, as one-time charges and trading losses nearly wiped out its gains from record high oil prices. Nexen shares closed down $4.01, or 10.9%, at $32.95.

Canadian Natural Resources fell $3.01, or 3.4%, to $86.64, while Suncor Energy shed $2.10, or 3.7%, to $54.50.

The resource-laden materials sector fell 2.8%, while its gold producers were trimmed by the lower price of bullion, which followed oil’s descent.

Agnico-Eagle Mines fell $2.95, or 4%, at $70.28, while fertilizer company Potash Corp of Saskatchewan (lost $8.75, or 3.9%, to $215.31.

The TSX financial sector surged ahead 3.3%, taking its cue from Wall Street.

CIBC gained $3.91, or 7.4%, to $57.10, and Bank of Montreal jumped $3.05, or 7.3%, to $44.98.

The junior S&P/TSX Venture composite index fell 25.45 points, or 1.1%, to 2,283.31.

The Canadian dollar slipped 0.46¢ to close at US99.32¢.

In New York, U.S. stocks continued to rally as oil prices dropped sharply for a third day and U.S. banking giant J.P. Morgan Chase & Co. posted unexpectedly solid earnings.

Shares of J.P. Morgan jumped 13.5% after the bank’s profit fell less than expected on resilient stock and bond underwriting revenue.

The Dow Jones industrial average surged 207.38 points, or 1.85%, to 11,446.66, while the S&P 500 rose 14.96 points, or 1.20%, to 1,260.32. The tech-heavy Nasdaq composite index climbed 27.45 points, or 1.20%, to 2,312.30.