The Toronto stock market posted a modest gain Tuesday as a positive showing in financials helped offset falling resource stocks.

The S&P/TSX composite index finished the session up 48.07 points, or 0.36%, to 13,369.12.

The financial sector was up 2.55%.

Bank of Montreal shares rose $2.55 to $57.95 even as its fourth-quarter profit dropped 35% to $452 million after one-time charges, including a big hit related to its exposure to stricken credit markets.

Great-West Lifeco shares were ahead $1.19 to $34.78 after it said it is selling its U.S. health insurance business to Cigna Corp., in a deal valued at US$2.25 billion.

The energy sector declined 2.9% amid a sharp drop in oil prices, with the January contract on the New York Mercantile Exchange closing down US$3.28 to US$94.42 a barrel on growing expectations that OPEC will raise output.

Shares in Canadian Natural Resources fell $5.44 to $65.61. The company announced it has cut its Canadian conventional crude oil and natural gas capital budget by one-third to $1.7 billion for 2008, citing the impact of Alberta’s planned higher royalties on energy production.

Gold prices were also fell sharply, with the December bullion contract on the Nymex off $12.50 to US$814 an ounce.

Kinross moved down 27¢ to $17.48.

The junior S&P/TSX Venture composite index fell 55.72 points, or 2.01%, to 2,721.28.

The Canadian dollar closed down 0.37 cent to US$1.005 cents after dipping below parity with the U.S. dollar for the first time since September 28, on the possibility that the Bank of Canada could start cutting interest rates as early as next week.

In New York, U.S. stocks rose after Abu Dhabi’s $7.5 billion purchase of a stake in Citigroup Inc. spurred a rebound in financial stocks and a drop in oil prices boosted shares of big manufacturers.

The Dow Jones industrial average was up 215.00 points, or 1.69%, at 12,958.44. The S&P 500 was up 21.01 points, or 1.49%, at 1,428.23. The Nasdaq composite index jumped 39.81 points, or 1.57%, at 2,580.80.