October 22, 2012 / 12:32 PM / in 5 years

CANADA STOCKS-TSX set to rise; Progress bid rejection to drag

Oct 22 (Reuters) - Canada’s main stock index looked set to open higher on Monday, helped by hopes Spain is moving closer to seeking a bailout, but Canada’s rejection of a foreign bid for Progress Energy Resources Corp. was seen hitting energy stocks.

Canada has blocked Malaysian state oil firm Petronas’ C$5.17 billion bid for Progress, in a surprise move that could signal problems for the much larger C$15.1 billion Chinese offer for oil producer Nexen Inc.

TOP STORIES

* Market watchers said Canadian energy stocks could face a bloody opening after the government blocked the Progress Energy deal, raising questions about other, bigger bids and about Canada’s willingness to let foreign investors in.

* Spanish Prime Minister Mariano Rajoy was given a boost for his austerity drive with an election victory in his home region of Galicia on Sunday, but wins for nationalist parties in the Basque Country could prove a headache for his centre-right government.

* State-controlled Russian oil company Rosneft has struck a two-part deal worth about $55 billion to buy privately-owned TNK-BP and make British oil company BP a near-20 percent Rosneft shareholder with two seats on the board.

* Japan’s exports tumbled at their sharpest pace since the aftermath of last year’s earthquake in the year to September, while manufacturers’ mood hit its lowest since early 2010, data showed, a sign the diplomatic row with China is further hurting the export-reliant economy.

* The euro zone’s fiscal deficit fell sharply last year as governments slashed expenses and raised taxes to regain market confidence in their public finances, but public debt still climbed, data from the European Union’s statistics office showed.

MARKET SNAPSHOT

* Canada stock futures traded up 1.3 percent

* U.S. stock futures , , were up around 0.27 percent to percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 307.35; rose 0.29 percent

* Gold futures : $1,723.2; rose 0.02 percent

* US crude : $90.65; rose 0.64 percent

* Brent crude : $110.51; rose 0.34 percent

* LME 3-month copper : $7,993; fell 0.27 percent

CANADIAN STOCKS TO WATCH

* Agrium Inc. : The fertilizer maker and agricultural goods retailer said its board plans to double its annual dividend payout.

* TransCanada Corp. : The pipeline company said on Sunday that the restart of its 590,000 barrel per day Keystone oil pipeline, which carries a quarter of Canada’s crude oil exports to the United States, would be delayed until Monday, a day later than expected.

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

* Agnico Eagle Mines Ltd. : National Bank Financial starts with sector perform rating and target price C$48 on the company’s concentrated focus in stable areas and its move to underground mining which could increase production volatility.

* Endeavour Mining Corp. : Canaccord Genuity raises target to C$4.70 from C$3.50, says the company’s acquisition of Avion Gold Corp gives it improved growth potential.

* Progress Energy Resources Corp. : CIBC cuts target to C$19 from C$22, Barclays cuts target to C$18 from C$22, Canaccord Genuity cuts target to C$18 from C$22 after the Canadian government blocked Petronas’ bid to acquire the company.

ON THE CALENDAR

* No major Canadian economic data scheduled for release

* No major U.S. events and data scheduled for release

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below