TORONTO (Reuters) — Toronto stocks ended lower yesterday as energy issues fell with oil prices, and financial shares weakened, but the announcement of a merger of timber producers Abitibi-Consolidated Inc. and Bowater Inc. gave the market some buoyancy.The Toronto Stock Exchange S&P/TSX composite index closed down 33.30 points, or 0.3 percent, at 12,945.96.

Oil prices dropped yesterday and may continue to dominate action in the market’s heavyweight energy sector, said Vincent Delisle, strategist at Scotia Capital, in Montreal.

“The market is basically hoping, or pricing, that we will see a rebound in spot (oil) prices,” he said. “If we don’t get that then it’s further weakness for the equities out there. I think this is the pressure we’re seeing right now.”

Delisle added that the TSX might get some direction from the US Federal Reserve’s interest-rate decision tomorrow.

The energy group fell 0.3 percent yesterday with Suncor Energy Inc. down 90 Canadian cents, or 1 percent, at C$86.95, while Talisman Energy Inc. dropped 24 Canadian cents, or 1.2 percent, at C$20.16.

The price for US crude dropped to $54.01 a barrel after Saudi Arabia’s ambassador to the United States said OPEC’s largest producer was satisfied with US crude near $50 a barrel, and as other OPEC producers showed signs of supply hikes in March.

Overall, six of the TSX index’s 10 main groups were lower.

The financial services sector, which comprises about a third of the key index’s weight, fell 0.5 percent. Bank of Nova Scotia dropped 46 Canadian cents, or 1 percent, to C$50.82, and Toronto-Dominion Bank shed 52 Canadian cents, or 0.7 percent, to C$69.52.

The materials group provided some support with a 0.2 percent rise, but precious and base metal miners limited the sector’s gains. The sector was boosted by Abitibi-Consolidated Inc.’s merger with US rival Bowater Inc.. Shares of Abitibi rose 83 Canadian cents, or 26.7 percent, to C$3.94.

Market volume was 397 million shares worth C$5.2 billion. Decliners outpaced advancers 928 to 681. The blue chip S&P/TSX 60 index closed 1.68 points lower, or 0.23 percent, at 743.33.