June 18, 2008 / 12:14 AM / in 9 years

Toronto stocks end flat as banks offset oils

TORONTO (Reuters) - The Toronto Stock Exchange’s main index finished flat on Wednesday as investors sold off financial shares, offsetting stronger energy issues, which gained on higher commodity prices.

Three of the 10 main index groups finished higher, including the heavyweight energy and materials sectors, which added 1.03 percent and 0.4 percent, respectively.

However, financials were a drag, shedding 1.14 percent, as investors found reason to worry after profits plunged at U.S. investment banking giant Morgan Stanley.

“The financials are sort of struggling here, so those that want to invest in the market are putting money into the proven winners,” said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier, referring to shares of oil firms and gold producers.

Among finance decliners, Toronto-Dominion Bank fell C$1.20, or 1.7 percent, to C$67.61. Sun Life Financial shed 74 Canadian cents, or 1.61 percent, to C$45.09.

The S&P/TSX composite index eked out a gain of 4.30 points, or 0.03 percent, to close at 15,073.13.

The S&P/TSX 60 index of Canadian bluechip names added 0.96 points to close at 900.93.

Bruce Latimer, a trader at Dundee Securities, said investors aren’t ready to plunge back into financials as fallout from the U.S. subprime mortgage crisis and a slower economy continue to weigh.

“I think investors are going to need to see a few quarters of results before they jump on the bandwagon,” he said.

Meanwhile, energy companies gained as oil futures rose 2 percent to settle at $135.71 a barrel on the New York Mercantile Exchange amid news that Chevron workers in Nigeria could strike shortly.

As well, the White House said it didn’t expect an announcement on increased oil production at an upcoming Saudi-hosted summit of producers and consumers.

Sector gainers included EnCana Corp, which added C$1.87, or 2 percent, to close at C$97.41. Suncor Energy rose C$1.30, or 2 percent, to C$66.85.

Among miners, Goldcorp rose 60 Canadian cents, or 1.5 percent, to C$41.56, and Teck Cominco rose 52 Canadian cents, or 1.05 percent, to C$49.92.

On Wall Street, the Dow Jones industrial average fell 131.24 points, or 1.08 percent, to end at 12,029.06. The tech-heavy Nasdaq gave up 28.02 points, or 1.14 percent, to close at 2,429.71.

($1=$1.02 Canadian)

Reporting by Wojtek Dabrowski; editing by Frank McGurty

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