Roger Biduk - TSX Lower on Financials & Oil.

Roger Biduk writes:

The Toronto Stock Exchange's main index was down almost 300 points Monday afternoon, rattled by the bankruptcy filing of Wall Street's Lehman Brothers Holdings Inc and worries over other big financial institutions.

The financial services sector, which accounts for about a quarter of the index's total weight, was down 1.2 percent - though up from earlier lows - with Canadian Imperial Bank of Commerce down 3.1 percent at C$62.19.

The Bank of Canada said on Monday it will provide liquidity as required to shore up financial markets spooked by the bankruptcy filing of Lehman and the sale of Merrill Lynch.

As well, Canada's banking regulator, the Office of the Superintendent of Financial Institutions, said the country's financial institutions are healthy and it has no plans for special measures to help banks cope with the world financial crisis.

By late Monday morning, the S&P/TSX composite index was down 293.02 points, or 2.288 percent, at 12,476.56, with nine of its 10 main groups lower. Earlier in the session the benchmark index had shed more than 3 percent.

The heavyweight energy sector dropped 3 percent as oil prices fell to around $97 a barrel on worries over lower U.S. demand and signs that Hurricane Ike had spared key U.S. energy infrastructure in the Gulf of Mexico. Canadian Natural Resources fell 4.5 percent to C$79.50.

The materials sector fell 1.3 percent as concerns over the fallout from the U.S. credit crisis overcame a rise in gold prices, which climbed on safe-haven buying.

Consumer staples was the only group in positive territory, managing to eke out a 0.2 percent gain.

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