UPDATE 1-Toronto stocks lower on uncertainty over bailout

Mon Sep 22, 2008 10:31am EDT
 
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*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

(Adds details)

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...