OTTAWA - CANADA'S Conservatives held on Tuesday to win the nation's third election in four years, after a global financial meltdown mangled their campaign, according to television projections.

Two of three national television stations predicted Prime Minister Stephen Harper would form his second minority government since 2006, with Conservatives elected or leading in more than 110 of 308 electoral districts.

Public broadcaster CBC however held out on the size of Mr Harper's caucus.

Canada is the first major economy to go to the polls since the start of a global banking meltdown in recent weeks, to be followed by a US presidential election November 4.

Mr Harper, at the helm of a minority government since January 2006, had started the 37-day electoral campaign ahead in the polls, but failed to galvanise support around any one issue, until world financial markets tumbled in the wake of US subprime mortgage woes.

In the final stretch, the race was suddenly dominated by the question of who was best qualified to lead the country amid current economic uncertainty.

At first losing his early 10-point lead, then running neck and neck with main rival Stephane Dion of the Liberals, Mr Harper managed to pull ahead slightly by bracing Canada's banks against a possible spillover of the global financial carnage.

Preliminary results also show that his key cabinet ministers in finance, defence, health and agriculture have won their seats. -- AFP