UPDATE 2-Toronto stocks lower on oil ahead of bailout vote

Wed Oct 1, 2008 11:58am EDT
 
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*TSX falls after Tuesday's 4 pct rally

*Energy sector drops 3.8 percent as oil slides

*Teck to reorganize mining business, change its name

(Adds details, analyst's comments, updates figures)

TORONTO, Oct 1 (Reuters) - The Toronto Stock Exchange's main index fell on Wednesday morning, hit by dropping oil prices as the market awaited a key vote by the U.S. Senate on the revised $700 billion bailout for the financial industry.

The index rallied 4 percent on Tuesday on renewed hopes a rescue deal would be passed this week, but jitters crept back into markets on Wednesday ahead of a crucial vote by the Senate, which is expected after 7:30 p.m. (1130 GMT).

Shortly after 11:15 a.m., the S&P/TSX composite index .GSPTSE was down 163.64 points, or 1.39 percent, at 11,589.26, with six of its 10 main groups lower.

"Until the bill in the U.S. actually gets passed there's going to be uncertainty," said Anil Tahiliani, head of research at McLean & Partners Wealth Management Ltd., in Calgary, Alberta. "People want to see what the final plan looks like given there will be slight changes to the original plan."

Bleak U.S. employment, manufacturing and U.S. oil inventory data helped to sour the mood on the Toronto market, Tahiliani added.   Continued...