The benchmark index of the Toronto Stock Exchange fell on Thursday after four days of gains, dragged down by declines in the financial and energy groups.

The S&P/TSX composite index ended down 176.38 points, or 1.74%, at 9,967.05.

The index rallied at the open, rising close to 2% and touching a 2009 high of 10,340.78, before fading.

The financials group was down 3.2% as life insurers reported weaker quarterly results.

Manulife Financial fell 2.5% to $22.18, while Sun Life fell 6.5% to $28.00. Great-West Life tumbled 6.3% to $21.45.

Banking shares were also under pressure, with Royal Bank of Canada off 2.5% at $43.89, ahead of the results of stress tests of major U.S. banks.

The energy group was off 1.1% as the price of oil fell back from early gains but still ended up 37¢at US$56.71 a barrel, its highest settlement in six months.

The resource-laden materials group slid 0.8%, even as gold prices remained steady.

In the telecom sector, shares of BCE Inc. sank 4.5% to $24.90. Telus Corp. rose 1.9% to $31.21.

The junior S&P/TSX Venture composite index gained 5.25 points, or 0.5%, to finish at 1,053.11.

The Canadian dollar slipped 0.47¢ to end at US85.29¢.

In New York, U.S. stocks slipped as investors locked in profits from technology and banking shares.

The Dow Jones industrial average dropped 102.43 points, or 1.2%, to 8,409.85. The S&P 500 slid 12.14 points, or 1.32%, to 907.39. The Nasdaq composite index fell 42.86 points, or 2.44%, to 1,716.24.

After the close, the U.S. government said that its stress tests of the 19 largest U.S. banks show they will need a total of US$74.6 billion to withstand a deeper recession.

IE