Toronto stocks gave up ground on Wednesday despite strong oil prices.

The S&P/TSX composite index fell 42.77 points, or 0.3%, to close at 14,371.53.

Five of the index’s 10 main subgroups finished higher, including the heavyweight energy sector, which eked out a gain of 0.18%.

EnCana Corp edged up 33¢, or 0.4%, to $84.57.

The June contract for crude oil on the New York Mercantile Exchange closed up $1.69 to a record US$123.53 a barrel.

Among decliners, financials eased 0.86% and the resource-laden materials group dipped 0.42%.

Bank of Montreal shares closed down 67¢ to $50.45 and Scotiabank fell 50¢ to $47.85

Bullion prices headed lower with the June gold contract in New York down $6.50 to US$871.20, pushing the TSX gold sector down 0.77%.

Kinross Gold Corp. fell 62¢ to $19.28.

The junior S&P/TSX Venture composite index gained 5.44 points, or 0.22%, to close at 2,504.58.

The Canadian dollar slipped 0.41 of a cent to close at US99.3¢.

In New York, U.S. stocks tumbled on concerns about inflation and higher interest rates as oil jumped to a record above US$123 a barrel.

Investors sold off shares of banks, home builders and companies dependent on consumer spending amid fears that rising prices will crimp demand and exacerbate fallout from the housing slump.

The Dow Jones industrial average slid 206.48 points, or 1.59%, to 12,814.35. The S&P 500 fell 25.69 points, or 1.81%, to 1,392.57. The Nasdaq composite index lost 44.82 points, or 1.80%, to 2,438.49.