The Toronto Stock Exchange’s main index finished flat on Monday, as a selloff in banking shares offset surging resources issues.

The S&P/TSX composite index slipped 5.94 points, or 0.04%, at 14,274.34.

The TSX financials group lost 2.2% after a brokerage said Bank of America was likely to renegotiate, or possibly walk away from, its deal to buy U.S. mortgage lender Countrywide Financial.

CIBC shares fell $2.37, or 3.1%, to $73.93, while Royal Bank of Canada fell $1.38, or 2.8%, to $48.70.

The energy and materials sectors were the sole sectors to climb higher, helping to prop up the index for much of the day as crude oil prices scaled fresh heights.

The crude futures contract for June delivery went as high as US$120.32, eclipsing the previous intraday high of US$119.93 set on April 28.

The oil contract ultimately ended Monday up $3.65 at $119.97 a barrel on the New York Mercantile Exchange.

The energy rose 1.4%, with Suncor Energy up $2.85, or 2.5%, at $116.50, and Petro-Canada gained$1.06, or 2.1%, to $52.47.

The materials sector pushed up 2.4%, and the gold subindex jumped 1.9%, helped by rising bullion prices.

In the materials group, Potash Corp of Saskatchewan added $5.55, or 2.9%, to $196.36, while Barrick Gold advanced $1.10, or 2.9%, to $39.41.

The junior S&P/TSX Venture composite index dipped 1.75 points, or 0.07%, to 2,493.76.

In New York, U.S. stocks fell on worries that Bank of America Corp. may walk away from buying troubled lender Countrywide Financial Corp., while record oil prices increased worry about consumer spending.

Microsoft’s decision to abandon its $50 billion offer to buy Yahoo Inc. added to gloom.

Financial stocks felt the brunt of the sell-off after a brokerage said Bank of America was likely to renegotiate its deal to buy Countrywide, the largest U.S. mortgage company, or might even scrap the deal altogether.

The Dow Jones industrial average finished down 88.66 points, or 0.68%, at 12,969.54. The S&P 500 shed 6.41 points, or 0.45%, to 1,407.49. The Nasdaq composite index lost 12.87 points, or 0.52%, to 2,464.12.