(RTTNews) - Canadian stocks ended a disastrous week on a characteristically downbeat note on Friday as resource stocks continued to sell off at an alarming rate. Commodity prices plummeted amid speculation that the world is teetering on the brink of recession, driving down demand for oil and base metals.

The S&P/TSX Composite Index extended its massive losses from the past two weeks, plunging 534.98 points to 9065.20. The main index started the week just above 11,000. When the dust settled, its 2,000 point weekly drop was the biggest ever and brought the main index to its lowest closing level in almost 4 years.

Energy stocks plummeted another 8.4 percent, as OptiCanada (OPC.TO) dropped 16 percent and EnCana (ECA.TO) fell 8 percent.

Oil plunged again on Friday and closed below $80 for the first time in a year as demand concerns continued to grow amid the global credit crisis. Light sweet crude for November delivery ended the session at $77.70. Oil touched as low as $77.09 in the early-going.

Oil closed the week down more than $12 a barrel or 17 percent and has lost nearly 30 percent in the last two weeks. Crude has lost more than 47% from its record $147.27 from July 11 and has fallen more than $30 since November became the front-month contract late last month.

Gold stocks plunged 12 percent, giving back some of their mid-week gains. Gold turned sharply lower on Friday and backed off a 10-week high. December gold closed at $859.00 an ounce, down $27.50 for the session. In electronic trading, gold hit $936.30, the precious metal’s highest intraday mark since July 28.

Eldorado Gold (ELD.TO) plunged 24 percent, while Centerra Gold fell 20 percent.

A silver lining on an otherwise black cloud was the performance of financials, which fell only slightly a day after the World Business Forum said that Canada’s financial system was the soundest in the world.

With market players hoping that the G7 meeting of finance ministers and central bankers will focus on the possible approaches various countries can take to alleviate a growing global credit freeze, the Financial Index dropped 1.1 percent.

Statistics Canada reported Friday morning that employment increased by 107,000 in September following a decline in July and a small gain in August.

Almost all of the 97,000 increase was in part-time work. Despite the gain, the unemployment rate was unchanged at 6.1%, as the increase in employment was matched by a similar rise in labor force participation. Analysts were predicting a modest increase in the neighborhood of 15,000.

Stats Canada reported that Canada’s merchandise imports declined 5.8% to $37.3 billion in August, the first decrease since March 2008, due to lower imports of energy and automotive products. The decline in imports was the largest percentage drop since December 1991. Total import volumes fell 6.9%, while prices increased 1.1%.

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