Selloffs in energy and resource issues sent Toronto stocks downward for a second day in row, as concern over a potential U.S. recession continued to
rile markets.

The S&P/TSX composite closed down 241.92 points, or 1.82%, at 13,074.96, its lowest level in five months.

Nine of the 10 TSX mains groups lost ground.

The resource-laden materials index lost 3.9%, while the gold subgroup lost 3.82%.

Barrick Gold Corp. lost $2.42, or 4.75%, to close at $48.52.

Yamana Gold Inc. lost $1.03, or 6.30%, to close at $15.33.

Gold futures for February delivery fell for the second day in a row, losing US$20.60, or 2.3%, to close at US$882 an ounce on the New York Mercantile Exchange.

The energy sub-group lost 3%.

Crude-oil futures dropped for the second day in a row, closing down more than 1% after a government report showed crude inventories in the U.S. rose more than expected. February’s crude contract fell US$1.06, or 1.2%, to finish at US$90.14 a barrel on the New York Mercantile Exchange.

Nexen Inc. lost $1.55, or 4.94%, closing at $29.81.

The financials group was little changed, down 0.01%, as some financial shares moved higher. TD Bank rose $1.34, or 2.1%, to $66.50.

In individual stocks, Magna International Inc. gained $4.03, or 5.58%, closing at $76.28 despite forecast that sales will slip this year compared with 2007 as vehicle production slows in North America and Europe. The company said it expects 2008 sales of between $24.9 billion and $26.2 billion.

The junior S&P/TSX Venture composite index lost 45.61 points, or 1.65%, to close at 2,724.21.

The Canadian dollar was also hit by market volatility, closing down 0.77 of a cent, at US$97.60.

In New York, stocks rallied during the afternoon amid talk that the U.S. Federal Reserve might cut interest rates again earlier than expected, but retreated late in the session.

The Dow Jones industrial average closed down 34.95 points, or 0.28%, at 12,466.16. The S&P 500 also lost ground, closing down 7.75 points, or 0.56%, at 1,373.20.

The tech-heavy Nasdaq composite index fell 23 points, or 0.95%, to close at 2,394.59.