UPDATE 4-Toronto stocks stung by U.S. bailout uncertainty
*TSX falls on uncertainty over U.S. bailout plan
*Worries over plan spark broad retreat
*Gold producers rally along with price of bullion
(Adds details, quotes)
By Leah Schnurr
TORONTO, Sept 22 (Reuters) - The Toronto Stock Exchange's main index tumbled more than 2 percent in choppy action on Monday in a broad retreat on uncertainty over the effectiveness of the proposed $700 billion U.S. financial bailout plan.
The lone group to make gains was the materials sector, pushed up by gold producers as bullion prices rose on the commodity's safe-haven allure and the weaker U.S. dollar. Among gainers, Goldcorp G.TO was up 9.8 percent at C$37.89.
But the broader market was rattled by concerns over how much the U.S. government's plan to take over sour mortgage-related debt from financial groups will help financial markets in the long term, analysts said, as well as uncertainty over the details of the plan. For details, see: [nSP4331].
In Toronto, the financial sector was down 3.7 percent, while Bank of Montreal BMO.TO fell 4.8 percent to C$47.53. Continued...