TSX drops as commodities fall

Three-month track of the TSX composite index

The key Toronto stock market index slid steadily Monday with continuing weakness in commodities.

The S&P/TSX composite index closed down nearly 302.47 points at 8,249.53.

All the sub-indexes were down, led by diversified metals and energy. Potash Corp., which once traded for more than $245 a share, fell 10 per cent, or $9.33, to $79.33.

The oil futures contract traded in New York fell $2.45 US to $39.91 a barrel.

The drop in the Toronto market followed a Scotiabank report that said the bank's commodities price index fell 9.4 per cent in November. It's down 35.4 per cent from a record high in July.

The index "will likely fall further in the next six months alongside challenging international economic conditions," the report said.

In New York, the Dow Jones industrial average closed down 59.42 points to 8,519.69.