Toronto stocks were lower on Wednesday, weighed down by the financial group at the start of bank earnings season.

At midday, the S&P/TSX composite index was down 6.24 points, or 0.1%, at 9,512.11. Volume was a light at 91 million shares.

Bank of Montreal, the first of the big five Canadian banks to report quarterly earnings, slipped 21¢, or 0.38%, to $55.85, despite posting a higher profit.

CIBC was down $1.18, or 1.6%, at $73/6-, after posting a 13% decline in its second-quarter profit.

The overall financials group, which makes up roughly a third of the index weighting, was off 0.68%.

Only four of the 10 TSX main groups posted gains.

Energy stocks shot up 1.40% as crude oil prices climbed above US$51 a barrel on news that U.S. crude inventories fell 1.6 million barrels, the second drop in 15 weeks.

That didn’t help First Calgary Petroleums shares, which slipped 82¢, or 6.6%, to $11.63. The company confirmed on Tuesday that it is in exclusive talks with Spain’s Repsol on forming a joint venture to develop its Algerian natural gas holdings, dashing some investors’ hopes of a rich takeover bid.

The junior S&P/TSX Venture Composite index slid 6.92 points, or 0.43%, to 1,599.63. Volume was 26 million shares.

The Canadian dollar eased against the U.S. currency after the Bank of Canada left interest rates steady, although it repeated that rates will have to rise eventually.

At mid-morning. the loonie stood at US79.14¢, from US79.35¢ cents, before the rate decision. It closed Tuesday at US79.38¢.

The Bank of Canada kept its benchmark overnight interest rate at 2.5% on Wednesday, as expected, and said it had not changed its outlook for the Canadian economy through the end of 2006.

On Wall Street, U.S. stocks extended losses on Wednesday as oil prices rose.

At midday, the Dow Jones industrial average was down 57.18 points, or 0.54%, at 10,446.50. The S&P 500 Index was down 5.54 points, or 0.46%, at 1,188.53. The tech-heavy Nasdaq Composite Index was down 19.94 points, or 0.72%, at 2,046.68.