TORONTO (Reuters) - Canada's main stock index lost ground on Wednesday, weighed by a sharp fall in shares of Bank of Montreal (BMO.TO: Quote) after it reported disappointing earnings, with investors also shying away from other major banks ahead of their quarterly results.
Bank of Montreal fell 3.3 percent to C$91.98 after reporting profits which were slightly below expectations, hit by a decline in income in the United States.
"That took the financials down" on fears that other big banks might also release less rosy earnings, said Paul Gardner, a portfolio manager at Avenue Investment Management.
The heavyweight sector, which accounts for a third of the index's weight, ended 0.8 percent lower.
Royal Bank of Canada (RY.TO: Quote), Canadian Imperial Bank of Commerce (CM.TO: Quote) and Toronto-Dominion Bank (TD.TO: Quote) are all due to report on Thursday, and all fell between 0.6 percent and 0.8 percent.
Home Capital Group Inc (HCG.TO: Quote), Canada's biggest non-bank lender, lost 2.7 percent to C$8.99 after saying late on Tuesday it had drawn down an additional C$250 million from a high interest credit line.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE settled down 57.45 points, or 0.37 percent, at 15,419.49.
The energy sector fell 1 percent, which Gardner tied to supply concerns following news earlier this week that Donald Trump's White House plans to sell half of the country's strategic petroleum reserves.