TORONTO (Reuters) - The Toronto Stock Exchange's main index finished flat yesterday as investors sold off financial shares, offsetting stronger energy issues, which gained on higher commodity prices.

Three of the 10 main index groups finished higher, including the heavyweight energy and materials sectors, which added 1.03 percent and 0.4 percent, respectively.

However, financials were a drag, shedding 1.14 percent, as investors found reason to worry after profits plunged at US investment banking giant Morgan Stanley.

"The financials are sort of struggling here, so those that want to invest in the market are putting money into the proven winners," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier, referring to shares of oil firms and gold producers.

Among finance decliners, Toronto-Dominion Bank fell C$1.20, or 1.7 percent, to C$67.61.

Sun Life Financial shed 74 Canadian cents, or 1.61 percent, to C$45.09.

The S&P/TSX composite index eked out a gain of 4.3 points, or 0.03 percent, to close at 15,073.13.

Bruce Latimer, a trader at Dundee Securities, said investors are not ready to plunge back into financials as fallout from the US sub-prime mortgage crisis and a slower economy continue to weigh.

"I think investors are going to need to see a few quarters of results before they jump on the bandwagon," he said.

Meanwhile, energy firms gained as oil futures rose two percent to settle at $135.71 a barrel on the New York Mercantile Exchange amid news that Chevron workers in Nigeria could strike shortly.

As well, the White House said it did not expect an announcement on increased oil production at an upcoming Saudi-hosted summit of producers and consumers.

Sector gainers included EnCana Corp., which added C$1.87, or two percent, to close at C$97.41. Suncor Energy rose C$1.30, or two percent, to C$66.85.