The NDP may have gained seats across Ontario but it has lost part of its grip on downtown Toronto.

Over in Parkdale-High Park, the NDP lost a star member. 

Incumbent Peggy Nash lost her seat to Liberal candidate Gerard Kennedy by more than 3,000 votes.

"I've been very fortunate to know the people of Parkdale-High Park and to work with them," Kennedy said in an interview with CTV Toronto.

He called Nash, who is well known as a long-time activist and former union official,  an "estimable opponent."

Kennedy, who held the riding as MPP, left provincial politics to run for the federal Liberal party leadership. After backing Liberal Leader Stephane Dion, he decided he would run for a seat against Nash.

Nash, who has represented the riding as MP since 2006, did not return calls seeking comment.

Chow's tough fight

There was better news in the Trinity-Spadina riding where Olivia Chow was re-elected with about 40 per cent of the vote.

The race between her and Liberal candidate Christine Innes was neck and neck for most of the night but Chow eventually pulled ahead by more than 3,400 votes to reclaim her seat. The riding was one of the most closely watched of the campaign, with many pundits calling the race too close to call in the days leading up to the election.

She stepped out in front of a crowd of about 400 supporters at 11:15 p.m. ET to declare her victory and thank her supporters.

"We did it," she said to a chorus of cheers. "To the people of Trinity Spadina, thank you for your support and trust. We have earned this victory together."

The rivalry between Chow and Innes dates back 11 years. Innes is married to former Liberal MP Tony Ianno, who Chow beat in 2006 to claim a seat in the House of Commons.

Ianno and Chow also faced off in the 1997 federal election but he managed to fend her off by a narrow margin.

Chow, who represented the riding in Toronto city hall since 1991, told the crowd at Kool Haus that the NDP's victory in Ontario is the first step in putting Canada back on the right track.

"This journey is for us to take back our country and put in on a path where everyone can prosper and no one is left behind," she said. "We have a lot to celebrate tonight."

Chow joins her husband, NDP Leader Jack Layton, who handily won the Toronto-Danforth riding. He cruised to victory with 45 per cent of the vote.

Churley loses again

In the Beaches-East York riding, Marilyn Churley tried for the second time to beat Liberal incumbent Maria Minna but without success.

Churley, who left her position as a key member of the NDP provincial party to run federally has not been able to make her mark in the riding. She lost by more than 4,000 votes.

Nonetheless, Churley was in high spirits Tuesday night, saying she ran a "perfect campaign."

"Strategic voting got us again at the end," she said in a telephone interview with CTV.ca. "It's that old thinking that you have to vote Liberal to prevent a Conservative majority."

When asked if she is considering running for leadership in the provincial NDP race, she was quick to say no.

"No, no, no," she said. "I'm interested in federal politics. I want to continue to work for environmental and social justice. My goal is to do just that."

Churley said she was sad to see her colleague Peggy Nash lose her seat.

"I think it's just a terrible thing to lose someone of Peggy's calibre," she said, blaming once again strategic voting for Nash's loss.

"She was a strong female voice for the party but I know she'll keep fighting," said Churley.

The NDP fared better in northern Ontario where it gained four seats:

  • Carol Hughes - Algoma-Manitoulin-Kapuskasing
  • Bruce Hyer - Thunder Bay-Superior North
  • Claude Gravelle - Nicket Belt
  • John Rafferty - Thunder Bay-Rainy river

Layton has been widely praised by pundits for running a solid campaign across the country.

He received wide praise for his performance on the English-language debate and in a poll released Friday, Layton was hailed as the most favourable leader.

At his victory party Tuesday night, the Layton told the crowd he was proud of the NDP's effort in this election.

"We didn't quite get the gold medal this election but we gave it our best shot and it was a great shot," he said. "My friends, we won't let you down!"