UPDATE 2-Toronto stocks fall on uncertainty over US bailout
*TSX index opens lower after a 7 percent rally on Friday
*Uncertainty over U.S. bailout package prevails
*Materials stocks rise on higher gold, base metals prices
*Tanganyika Oil jumps after it says in talks with buyer
TORONTO, Sept 22 (Reuters) - The Toronto Stock Exchange's main index stumbled on Monday morning on weakness in energy and financial shares as investors worried about the effects of the proposed $700 billion U.S. financial bailout plan.
The retreat came after news that the two remaining major U.S. investment banks, Goldman Sachs (GS.N: Quote) and Morgan Stanley MS.N, have sought refuge in the arms of the U.S. Federal Reserve and transformed themselves into bank holding companies to survive the financial storm. [ID:nSP4331] [ID:nN13574113]
On Friday, the Toronto market soared on news if the bailout plan -- making its biggest percentage gain since 1987, rising 7.03 percent to 12,912,99 -- but it had some second thoughts on Monday.
"I would say there's still a lot of uncertainty out there as to the rescue package," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier. Continued...