TSX tumbles below 8,000

A double-barrelled shot of tumbling oil prices and more bad news from one of Canada's big banks pushed the S&P/TSX composite index under 8,000 points for the first time in more than five years.

The TSX's dismal day saw a drop of 765.76 points, the fourth-largest retreat on record, to finish at 7,724.80. In terms of percentage points, Thursday's drop of more than nine per cent was the second-largest on record.

The index has not gone below 8,000 points since Dec. 17, 2003, and has not had a close so low since Oct. 28, 2003.

The financial group sub-index was down more than 12 per cent after TD Bank became the latest major Canadian financial institution to disclose charges it will take related to the global credit crunch.

TD shares dropped $6.36, or more than 12 per cent, to close at $43.57.

Other banks followed TD down. Royal Bank fell $5.54 to end at $35.65 while CIBC fell $6.01 to $42.28 and Scotiabank dropped $4.70 to $30.54. Bank of Montreal gave back $4.66 to finish at $33.34.

The energy group sub-index was down by 14 per cent as oil stocks fell as the price of oil fell $4 US to end at $49.62 a barrel. 

The only sub-group on the TSX to make any gains was the gold group, which rose 2.2 per cent as the price of gold rose $12.70 to $748.60 an ounce.

The Canadian dollar traded down 2.52 cents to finish at 77.31 cents US.

The Dow Jones industrial average dropped 444.99 points, or more than five per cent, concluding the trading day at 7,552.29. Nasdaq fell 70 points to finish at 1,316.12, while the broader S&P 500 index fell 54 points, ending at 752.44.