October 30, 2012 / 12:53 PM / 5 years ago

CANADA STOCKS-TSX may open higher, storm damage seen limited

Oct 30 (Reuters) - Canada’s main stock index looked set to open higher on Tuesday, as the initial damage inflicted by a powerful storm on the U.S. east coast seemed to have been less severe than many had expected, but kept Wall Street closed for a second day.

TOP STORIES

* Sandy, one of the biggest storms ever to hit the United States, battered the nation’s eastern seaboard on Tuesday, swamping New York City streets with record levels of floodwater, blacking out power to millions of people and bringing transportation to a halt through much of the region.

* Talisman Energy Inc, that recently replaced its chief executive amid takeover speculation, reported a loss in the third quarter mainly due to impairment charges.

* Yamana Gold Inc reported a 6 percent fall in third-quarter adjusted profit on Monday as lower metal prices and higher production costs outweighed strong gold sales volumes.

* Spain’s recession extended into the third quarter while inflation stayed high in October, data showed, indicating a government austerity programme to cut the public deficit is also pushing up living costs.

* British oil company BP raised its dividend and signaled a more upstream-focused future beyond 2014 along with stronger than expected quarterly profits.

* The Bank of Japan boosted its monetary stimulus for the second month in a row in response to intense political pressure for action and mounting evidence that the world’s third-largest economy was on the cusp of recession.

MARKET SNAPSHOT

* Canada stock futures traded up 0.31 percent

* U.S. stock futures , , were down around 0.14 percent to 0.32 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 296.57; rose 0.14 percent

* Gold futures : $1,713.5; rose 0.34 percent

* US crude : $85.91; rose 0.43 percent

* Brent crude : $109.49; rose 0.05 percent

* LME 3-month copper : $7,750.25; rose 0.67 percent

CANADIAN STOCKS TO WATCH

* Canadian Oil Sands Ltd.. The company’s third-quarter profit jumped 40 percent and the company raised its full-year cash flow guidance, despite a fall in synthetic crude oil prices.

* Petrobank Energy and Resources Ltd. : The company will merge itself with its light-oil focused unit PetroBakken Energy Ltd and transfer its heavy oil business to a new entity to arrest a fall in its market valuation.

ANALYST RECOMMENDATIONS

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

* Cenovus Energy Inc. : SocGen raises to buy from hold and raises target price to C$40 from C$35 to reflect rising confidence in management’s ability to execute and the efficiency gains that could yield additional operational upside

* Duluth Metals Ltd. : Raymond James reinitiates coverage with outperform rating and a target price of C$3.75 citing potential world-class project under development in joint venture with Antofagasta and favorable exploration results

* Progress Energy Resources Corp. : Canaccord Genuity raises target to C$21 from C$18 on increased confidence that the deal with Petronas will successfully close at C$22 per share after it exercised its right to extend the outside date of the proposed transaction by 30 days

* Teck Resources Ltd. : Raymond James starts with outperform rating and a price target of C$40, says the company has a strong coal division that should benefit from a recovery in coal prices and three copper projects that could more than double its copper output by 2022

* TransCanada Corp. : Canaccord Genuity raises target price to C$47 from C$46 after the company said it has entered into joint venture with Phoenix Energy Holdings to develop a $3 billion, 500 km oil pipeline from northwest of Fort McMurray to the Edmonton/Heartland area

ON THE CALENDAR

* Major Canadian economic data includes producer prices and raw materials

* Major U.S. events and data includes Redbook, S&P C-S 20 and Dallas Fed services activity

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