TORONTO (Reuters) - The Toronto Stock Exchange's main index gave up nearly all its gains yesterday, as weak resources undermined a rally by financial issues after Royal Bank of Canada said it would take a smaller second-quarter write-down than had been expected.

Miners were among the companies that led the retreat, including Inmet Mining, as the start date of its Las Cruces copper project was put in doubt after Spain's water authority suspended a water permit. Inmet gave up C$9.49, or 12.3 percent, at C$67.50.

The financial sector pushed higher, with shares of Royal up C$1.23, or 2.5 percent, at C$49.85 after Canada's largest bank said it will see a pretax write-down of C$855 million amid liquidity pressures on its assets.

"There's so many rumours floating around on what (banks') exposures are," said Sal Masionis, stockbroker at Brant Securities. "So obviously it's quite nice to have a rally."

The S&P/TSX composite index closed up 9.61 points, or 0.07 percent, at 14,626.31 with half of the 10 main sectors higher. The banking group, which has been battered by global losses and write-downs stemming from the credit crunch and deteriorating US housing market, rose one percent.

The sector had earlier helped the benchmark jump to a record high of 14,737.18, surpassing the 14,695.75 mark that was reached on Monday.

Canadian Imperial Bank of Commerce added 76 Canadian cents, or one percent, to C$74.01, and Toronto-Dominion Bank rose 57 Canadian cents, or 0.9 percent, to C$67.57.

Gold producers fell 1.7 percent, while the price of bullion slid slightly. Agnico-Eagle Mines was down C$1.50, or 2.3 percent, at C$63.91, while the broader materials sector was off 0.9 percent.

"I would suggest on an intermediate trend, it looks like gold wants to rally," said Andrew Martyn, portfolio manager at Davis-Rea.

"So I think from an entry point of view, gold is looking extremely good, and you've got some quality stocks that have traded off here."

The small health care sector was down 1.1 percent, while Cardiome Pharma lost 37 Canadian cents, or 3.8 percent, to C$9.30.