CORRECTED - CANADA STOCKS-TSX suffers biggest net one-day drop

Mon Dec 1, 2008 5:20pm EST
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(Fixes second paragraph to show it was crude's lowest settlement since May 2005, not May 25)

*TSX sinks 9.3 pct; erases Friday's 5.9 rise

*Energy shares fall as oil falls below $50 barrel (Adds official close, quote)

By Cameron French

TORONTO, Dec 1 (Reuters) - The Toronto Stock Exchange's main index tumbled more than 864 points on Monday, its worst net drop, as sliding commodity prices, gloomy U.S. economic news, and the urge to take profits after six-straight days of gains prompted a sell-off that hit every market sector.

Resource issues led the market lower as energy shares were stung by OPEC's deferral of any new oil supply cuts. U.S. crude sank $5.15 to $49.28 a barrel, its lowest settlement since May 2005.

Materials stocks were undercut by falling gold prices and an increasingly gloomy economic view, including a declaration that the United States has been in recession for the past year.

The S&P/TSX composite index .GSPTSE fell 9.3 percent to 8406.21. The percentage decline was the second biggest ever.

On a net basis, Monday's fall beat the last record set on Sept. 29.   Continued...