Canadian equities erased early gains to finish lower on Wednesday as financial stocks took a mid-afternoon tumble.

The S&P/TSX composite index fell 51.95 points, or 0.6%, to close at 8,797.44.

Financial stocks gave up gains to finish down 1.6%.

Sun Life Financial Inc. shed 4.2% to $22.10 and CIBC shares dropped $1.41, or 2.9%, to close at $46.65.

Shares of AGF Management Ltd. dropped 3.5% after it announced that first-quarter profit fell 80.5% from a year earlier to $12.2 million. AGF shares dipped $0.29 to $8.00.

Also lower on Wednesday was Bank of Montreal, down 2.1% to $33.29 and Bank of Nova Scotia, lower by 2.3% to $31.68.

Meanwhile, news that crude inventories rose more than expected last week led oil futures lower on Wednesday. Crude oil for May delivery dropped US$1.21, or 2.2%, to end at US$52.77 a barrel on the New York Mercantile Exchange.

The energy group dipped 1.1%.

Shares of Nexen Inc. fell 4.1% to $20.41 and EnCana Corp.’s stock declined $1.38, or 2.5%, to finish at $53.12.

Petro-Canada’s stock shed 1.5% to $33.51.

Higher for the day was Canadian Natural Resources Ltd., up $0.72, or 1.4%, to $51.90.

Offsetting TSX losses were materials stocks, which gained 1.9% on Wednesday.

In addition, the sub-gold index surged 3.2% as gold futures advanced. Gold for April delivery ended up US$12.00, or 1.3%, at US$935.80 an ounce on the Comex division of the New York Mercantile Exchange.

Shares of Kinross Gold Corp. rose 3.7% to $23.47 and Goldcorp Inc. advanced $1.32, or 3.2%, to $42.69.

Shares of Barrick Gold Corp. finished at $40.45, up 2.4%.

Lower on Wednesday was Inmet Mining Corp., down $1.47, or 4.3%, to close at $32.68.

Junior companies maintained their momentum throughout the day, sending the S&P/TSX Venture composite index up 24.75 points, or 2.7%, to 949.04.

The Canadian dollar added US0.22¢ to finish the day at US81.40¢.

In contrast to Canadian market patterns, financial stocks in the United States experienced strength and carried the main U.S. stock indexes higher in late day trading on Wednesday.

In New York, the Dow Jones industrial average gained 89.84 points, or 1.2%, to end at 7,749.81.

The S&P 500 index added 7.63 points, or 1%, to finish at 813.88.

The Nasdaq composite advanced 12.43 points, or 0.8%, to 1,528.95.

IE