Markets sank Thursday as investors were disheartened by U.S. Federal Reserve chief Bernanke’s glum testimony to the Senate Banking Committee.

In Toronto, the S&P/TSX composite index closed down 74.27 points, or 0.56%, at 13,208.03.

Seven of the 10 main TSX groups fell.

The materials group dropped 0.86%.

Lundin Mining Corp. shares lost 96¢, or 11.02%, to close at $7.75 on a very heavy day of trading. The company said its Q4 revenues will fall short of expectations and costs will be higher than previously estimated.

The gold sub-index dropped 1.49%. Gold for April delivery moved up 60¢ to end at US$910.80 on the Nymex.

Barrick Gold Corp. shares dropped $1.21, or 2.48%, to end the session at $47.50.

The heavyweight energy group eked out a 0.26% gain. Crude for March delivery rallied US$2.19, or 2.3%, to close at US$95.46 a barrel
on the Nymex.

Encana Corp. shares gained 77¢, or 1.10%, to close at $70.77.

Nexen Inc. shares dropped 45¢, or 1.54%, to close at $28.82, after it announced Q4 earnings increased to $194 million from $77 million, and full-year profit was more than $1 billion.

The financials sector fell 1.17%.

Shares in Manulife Financial Corp. dropped 16¢, or 0.43%, to close at $37.18, after it announced a 4% rise in Q4 profits, to $1.14 billion.

Royal Bank of Canada stock lost 65¢, or 1.28%, to close at $50.05.

In individual stocks, George Weston Ltd., parent company of Loblaws Cos., shares dropped 34¢, or 0.67%, to end at $50.06, after it reported profits
from continuing operations of $151 million.

The junior S&P/TSX venture composite index closed up 11.70 points, or 0.46%, at 2,573.01.

The Canadian dollar closed out at US$99.98, down 0.02 of a cent from yesterday’s close.

In New York, Bernanke’s grim economic outlook reversed three days of market gains.

The Dow Jones industrial average fell 175.26 points, or 1.40%, at 2,376.98.

The S&P 500 dropped 18.35 points, or 1.34%, to end at 1,348.86.

The tech-heavy Nasdaq composite index closed down 41.39 points, or 1.74%, at 2,332.54.