UPDATE 3-Toronto stocks falter as credit woes weigh

Tue Aug 12, 2008 5:26pm EDT
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* 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 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...