UPDATE 3-Toronto stocks falter as credit woes weigh
(Adds details, quotes)
* TSX index slips lower as banks fall on credit woes
* Rally by gold producers lifts materials sector
* Timminco falls after disappointing results
By Leah Schnurr
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: Quote) 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. financial crisis, and in Toronto National Bank of Canada (NA.TO: Quote) slid 2.8 percent.
"What it boils down to in the big picture is we've had a liquidity boom for 20-odd years," said Levente Mady, broker at MF Global Canada in Vancouver. Continued...