Stocks in Toronto were hit heavily, today, falling to half of their bull-market peak of two years ago. The Toronto Stock Exchange’s S&P/TSX composite index has lost half its value since its high of 11,401.97, set in September 2000.

The only mitigating factor in this bleak picture is the fact that the index shed more than 50 stocks from the original 300, as it shifted from the TSE 300 to the TSX.

The TSX composite index fell 135.24 points, or 2.32%, finishing at 5,695.33. Today marked the sixth straight losing session. The fall was broad-based with all of the TSX ten sub-sectors finishing lower.

The usually rough Autumn period has lived up to tradition with negative earnings forecasts, concerns about a possible U.S.-Iraq war, and renewed fears of bank loan-losses combining to hurt trading.

Today, the momentum was negative with 811 issues declining and only 273 advancing. Volume was large with 183.5 million shares worth $2.84 billion changing hands..

The financial sector fell 1.98%. It was hit by a late in the day announcement from the Dominion Bond Rating Service, which changed its long-term outlook on three Canadian banks — Bank of Nova Scotia, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce — to a negative trend. DBRS is forecasting prolonged economic weakness that will hit credit quality and capital markets.

Bank of Nova Scotia finished down $1.47, or 3.3%, at $42.53, Toronto-Dominion lost 84¢, or 3 percent, to C$26.80, while CIBC shed 84 Canadian cents, or 2.4 percent, to finish at C$34.36.

The industrials sector fell 3.43. Bombardier Inc. hit a new low, falling 33¢ or 9.1%, to $3.30.

The S&P/TSX Venture Composite Index closed down 10.63 at 902.10 Trading was moderate on a volume of 21.0 million shares worth 5.0 million dollars, with 122 advances, 185 declines and 519 issues unchanged.

Investors in the U.S. went on a selling binge, too, as the Dow Jones industrial average fell 215.22 points, or 2.87%, to 7,286.27. The Nasdaq composite fell 15.10 points, or 1.34%, to 1,114.11.