After two days of strong gains, the Toronto Stock Exchange succumbed to broad-based declines on Thursday, including a steep drop in energy stocks.

The S&P/TSX composite index plummeted 282.85 points, or 2.8%, to 9,949.59.

The energy group tumbled 4.4% as oil futures finished lower. Crude for July delivery fell US$0.99, or 1.6%, to US$61.05 a barrel on the New York Mercantile Exchange.

Petro-Canada shed $1.73, or 3.9%, to $43.12 and shares of Canadian Natural Resources Ltd. dropped 5.7% to $60.00.

EnCana Corp. fell 5.6% to $58.76, while Husky Energy Inc. finished at $31.41, off 5.6%.

Also sharply lower was Niko Resources Ltd., down $6.52, or 8.5%, to $70.10.

Financial stocks also dropped a hefty 3.1% on Thursday.

Shares of Manulife Financial Corp. lost 4.6% to $21.39 and Royal Bank of Canada fell 2.6% to $42.60.

Bank of Nova Scotia slipped $1.28, or 3.5%, to $35.53 and Bank of Montreal’s stock declined 3.8% to $41.53.

Meanwhile, the sub-gold index gained 1.3% as gold futures reached their highest level in nearly two months. Gold for June delivery ended at US$951.20 an ounce, up US$13.80, or 1.5%, on the Comex division of the New York Mercantile Exchange.

On the TSX, Yamana Gold Inc. surged 4.6% to $11.94.

Barrick Gold Corp. gained 1.1% to $41.97.

Despite the gains for gold, the materials group fell 1.3% on Thursday.

Potash Corp. fell $6.22, or 4.8%, to $124.02 after announcing on Wednesday that it would decrease output of the crop nutrient by 400,000 metric tons due to weak demand.

Shares of Agrium Inc. fell 5.6% after the company announced it would proceed with the construction of a new fertilizer production facility in Missouri. Agrium’s stock fell $3.27 to $55.49.

Also lower was First Quantum Minerals Ltd., down 6.1% to $47.12, and Inmet Mining Corp., lower by $3.07, or 6.8%, to $41.84.

Junior companies on the S&P/TSX Venture composite index managed to recover from earlier losses to finish at 1,089.85, up 4.21 points, or 0.4%.

The Canadian dollar continued to climb, adding a fifth of a cent to close at US87.87¢.

In New York, U.S. stocks also tumbled on Thursday after a report from the Labor Department revealed higher-than-expected jobless claims last week.

The Dow Jones industrial average finished at 8,292.13, down 129.91 points, or 1.5%.

The three consecutive day drop is the Dow’s longest losing streaks since the five-day drop ended March 3.

The S&P 500 index fell 15.14 points, or 1.7%, to end at 888.33.

The Nasdaq composite index shed 32.59 points, or 1.9%, to close at 1,695.25.

IE