May 9, 2012 / 12:47 PM / 5 years ago

CANADA STOCKS-Spanish, Greek woes to weigh on TSX at open

4 Min Read

May 9 (Reuters) - Toronto's main stock index looked set to extend losses on Wednesday, after hitting a new 2012 low in the previous session, as news out of the euro zone continued to weigh on market sentiment.

Escalating doubts that Greece will meet the terms of its bailout deal amid political upheaval, and Spain's demand that its banks raise another 35 billion euros added to worries.

Top Stories

* Radical leftist Alexis Tsipras meets the leaders of Greece's mainstream parties on Wednesday, with little chance of clinching a deal on a coalition government after he set tearing up an EU/IMF bailout deal as a condition.

* Spain will demand banks set aside another 35 billion euros ($45 billion) against loans to the ailing building sector, financial sources said, raising the possibility more public cash will be needed to rescue the country's lenders.

* TransCanada Corp said it secured "firm commitments" from parties interested in accessing a new terminal at the starting point of its Keystone pipeline system.

* Enbridge Inc's first-quarter net profit fell 27 percent as Canada's second-largest pipeline company incurred losses from the revaluation of financial derivatives.

* Fertilizer producer and retailer Agrium Inc's quarterly profit fell on hedging losses and higher costs, including a more-than-five-fold rise in pre-tax share-based payments.

* Tim Hortons Inc reported 10 percent rise in first-quarter profit as sales rose.

Market Snapshot

* Canada stock futures traded down 0.9 percent

* U.S. stock futures , , were down around 0.7 percent

* European shares, were down

Commodity Price Moves

* Thomson Reuters-Jeffries CRB Index : 294.12; fell 0.34 percent

* Gold Futures : $1,592.5; fell 0.72 percent

* US Crude : $96.27; fell 0.76 percent

* Brent Crude : $112.05; fell 0.6 percent

* LME 3-month Copper : $7,960; fell 1.67 percent

Canadian Stocks to Watch

* Canadian Pacific Railway Ltd. : Two more proxy advisory firms backed activist investor William Ackman in his bid to shake-up the company, a further boost for Ackman's Pershing Square Capital Management in its proxy fight with Canada's No. 2 railroad.

* Calfrac Well Services Ltd. : The company's quarterly profit missed analysts' expectation as an unusually warm winter in Canada slowed the movement of equipment.

* Crocotta Energy Inc. : The company reported a narrower first-quarter loss, helped by a rise in oil and natural gas production and lower costs.

* Kinross Gold : The miner said on Tuesday its first-quarter profit fell 57 percent, as its revenues were hit by one-time, tax-related charges.

* Surge Energy Inc. : The oil and gas company reported a profit on higher crude and natural gas liquids production and the company said it expects to double its funds from operations in 2012.

* Sprott Inc. : The asset manager's first-quarter profit rose about 60 percent, helped in part by investment gains.

* Wi-Lan Inc. : The technology licensing firm reported a first-quarter loss, hurt by a financing-related charge.

Analyst Recommendations

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

* CI Financial : Canaccord Genuity cuts price target to C$26.25 from C$27.25 on lower than expected net sales; keeps buy rating

* George Weston : Barclays cuts price target to C$62 from C$64, after it cut its earnings forecast on weaker volume trends; keeps equal weight rating

* Cathedral Energy : RBC cuts target price to C$8 from C$9 to reflect near-term headwinds facing the Canadian oilfield services sector; keeps sector perform rating

* Canelson Drilling : NBF raises price target to C$7.50 from C$6.60 on rising margins and growing demand for rigs; keeps outperform

* NexJ Systems : Canaccord Genuity cuts price target to C$10 from C$11, based on its slightly lower near-term revenues estimate; keeps buy rating

On the Calendar

* Major U.S. events and data includes Wholesale inventories

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