UPDATE 1-Toronto stocks lower on uncertainty over bailout
*TSX opens lower following 7 percent rally on Friday
*Uncertainty over U.S. bailout package prevails
*Materials stocks rise on strength in gold, base metals
*Tanganyika jumps after it says in acquisition talks
TORONTO, Sept 22 (Reuters) - The Toronto Stock Exchange's main index opened slightly lower on Monday, pulled down by weakness in energy and financials shares as investors worried about a proposed $700 billion U.S. bailout plan.
The soft opening comes after news that two remaining major U.S. investment banks, Goldman Sachs (GS.N: Quote) and Morgan Stanley (MS.N: Quote), sought refuge in the arms of the Federal Reserve and transformed into bank holding companies to survive a financial storm. [ID:nSP4331]
It is the latest move by Washington to provide solace in a cathartic market, and comes as investors are skeptical over the proposed bailout that needs approval from Congress. [ID:nN13574113]
The tentative picture comes after Toronto index soared to its biggest percentage gain since 1987, rising 7.03 percent to 12,912,99. Continued...