August 12, 2008 / 8:43 PM / 9 years ago

UPDATE 2-Toronto stocks slip as banks falter on credit woes

(Updates closing numbers, adds details)

*TSX index ends lower as banks fall on credit woes

*Bounce in gold producers helps materials sector

*Timminco falls after disappointing results

TORONTO, Aug 12 (Reuters) - The Toronto Stock Exchange’s main index closed lower on Tuesday as financial shares fell on worries over more losses related to the credit crunch, offsetting a rebound by gold producers.

Bay Street’s financials were caught up in more woes out of the United States after JPMorgan Chase (JPM.N) said it has accumulated $1.5 billion of losses so far this quarter on mortgage-related assets.

The news stoked concerns of more pain yet to come out of the U.S. mortgage crisis, and in Toronto National Bank of Canada (NA.TO) slid 2.8 percent.

Leading the upside, the materials sector got a boost from gold-mining stocks even as gold prices fell as the sector rebounded from a recent selloff. Agnico-Eagle Mines (AEM.TO) bounced 6 percent.

The S&P/TSX composite index .GSPTSE closed down 36.19 points, or 0.27 percent, at 13,167.00 with six of its 10 main sectors in negative territory. It was the fourth session in a row the benchmark index has closed lower.

Shares of silicon processor Timminco TIM.TO slumped C$4.87, or 24.4 percent, to C$15.10 after the company reported quarterly results on Monday that were not as strong as anticipated.

The financial sector lost 1.1 percent, with National down C$1.46 at C$50.44, and Royal Bank of Canada (RY.TO) falling 79 Canadian cents, or 1.7 percent, to C$47.13.

The gold producers subindex gained 2.6 percent, giving a 2.1 percent lift to the larger materials sector. Agnico-Eagle added C$2.92 to C$51.92, and Goldcorp (G.TO) rose C$1.25, or 3.9 percent, to C$33.18.

The group of gold companies had tumbled for the past three sessions, amounting to losses of nearly 10 percent. ($1=$1.06 Canadian) (Reporting by Leah Schnurr; Editing by Peter Galloway)

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