TORONTO (Reuters) - Toronto's main stock index finished slightly lower yesterday as Canadian Imperial Bank of Commerce (CIBC) reported quarterly results that missed expectations and investors took a pause from the dizzying rally of recent months.

CIBC was the most influential mover on the downside after it reported a lower-than-expected quarterly profit as the bank set aside more money to cover bad loans, sending shares down 5.3 percent to C$65.01.

"CIBC is off and that is holding the Canadian market back," said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc.

The index fell sharply at the open, dropping nearly one percent after CIBC reported results.

At the outset of the day other banks handed back gains made on the back of Bank of Montreal's surprisingly solid third-quarter report on Tuesday.

But some of Canada's big lenders finished the day higher including Bank of Montreal up 2.6 percent at C$53.65, while Toronto-Dominion Bank climbed 0.8 percent to C$66.25.

Overall, the financials sector was flat, down 0.06 percent.

The S&P/TSX composite index was down 8.36 points, or 0.08 percent, at 10,912.17, with seven of 10 sectors lower.

The price of oil settled lower at $71.43 a barrel, pressured by rising US stockpiles The energy group was little changed, down 0.01 percent and materials were off 0.49 percent.

Reassuring data that showed new US home sales hit their highest level in 10 months in July and orders for durable goods surged failed to move the market higher as investors took a break from bidding up stocks.

The market is up some 45 percent from its multi-year low reached in early March.

The Canadian dollar closed lower against the greenback for the second straight session yesterday as a drop in commodity prices forced the currency to relinquish more of its recent gains.

Commodity prices, which often influence the currency given the nature of Canada's exports, were knocked lower after China said it would act to restrict redundant investments across a number of sectors.

---- The move lower was accentuated by a stronger U.S. currency, which was boosted by data that offered investors fresh evidence a modest economic recovery was taking place.