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 and Morgan Stanley MS.N, 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...