November 2, 2010 / 12:58 PM / 7 years ago

CANADA STOCKS-TSX set to rise on commodity jump; Potash eyed

4 Min Read

Nov 2 (Reuters) - Toronto's main stock index looked set to open higher on Tuesday on a jump in commodity prices, with investors also keeping a close eye on the takeover fight for Potash Corp. (POT.TO)

Canada's Industry Minister Tony Clement denied media reports that Canada has decided to approve BHP Billiton's $39 billion hostile bid to acquire the world's top fertilizer maker Potash. [ID:nN02203981]

Factors to Watch

* Canadian equity futures <0#SXF:> pointed to a higher open.

* U.S. stock index futures rose as investors awaited results from the mid-term elections and the outcome of the U.S. Federal Reserve's policy-setting meeting. [.N]

* European shares edged up with oil majors supported by upbeat underlying results from BP, though trade was choppy ahead of the U.S. Federal Reserve's decision on monetary easing on Wednesday. [.EU]

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.97 percent in early trade.

* Oil rose ahead of an expected decision by the Federal Reserve to pump more money into the U.S. economy and after an apparent upward shift in price tolerance among oil producing countries. [O/R]

* Gold firmed in Europe, climbing back towards the previous session's near two-week high, as the dollar retreated ahead of a hotly anticipated policy meeting of the U.S. Federal Reserve starting later in the day. [GOL/]

* Copper rose as the dollar fell and on signs demand could be improving in top metals consumer China and in the United States, but investors were cautious ahead of U.S. elections and a Federal Reserve meeting. [MET/L]

Canadian Stocks to Watch

* Talisman Energy Inc. TLM.TO: Canada's No. 4 independent oil producer said on Tuesday its third-quarter profit rose four-fold, helped by higher commodity prices and increased its full-year production outlook. [ID:nSGE6A10EV]

* Baja Mining Corp. BAJ.TO: The Vancouver-based mine development company said it would to raise C$160 million ($158.4 million) in a bought deal and use the proceeds for construction of its majority-owned Boleo project in Mexico. [ID:nSGE6A00MO]

* Breakwater Resources Ltd BWR.TO: The Canadian miner on Monday posted third-quarter profit that beat estimates, helped by higher metal prices. [ID:nSGE6A00KQ]

* Mercer International Inc. MRIu.TO: The company which produces market northern bleached softwood kraft reported on Monday third-quarter profit on higher pulp production. [ID:nSGE6A00LC]

* HudBay Minerals Inc HBM.TO: The miner expects its full-year gold, copper and zinc production to remain in line with previous forecasts, President and CEO David Garofalo said on Monday. [ID:nN01174721]

* Absolute Software Corp. ABT.TO: The Canadian company posted a narrower first-quarter loss, helped by higher sales contracts. [ID:nSGE69S0K4]

* Bridgewater Systems Corp. BWC.TO: The telecoms software firm posted a higher third-quarter profit topping market estimates, helped by an increase in its customer base, and raised its full-year forecast. [ID:nSGE6A00FH]

* Ritchie Bros Auctioneers Inc. (RBA.TO): The industrial auctioneer reported on Tuesday third-quarter results that beat estimates on increased auction proceeds, but said it saw market uncertainty, especially in the United States, for the rest of the year. [ID:nSGE6A10G2]

Analyst Recommendations

Following is a summary of research actions on Canadian companies reported by Reuters. [RCH/CA]

* Absolute Software Corp. ABT.TO rating raised to buy from hold at Paradigm Capital

* Creston Moly Corp. CMS.V price target raised by C$0.20 to C$0.85; rating sector outperform at Haywood

* Equinox Minerals Ltd.EQN.TO price target cut to C$5.10 from C$5.30; rating sell at UBS

* Toromont Industries Ltd. TIH.TO price target raised to C$34 from C$31.50; keeps outperform rating at Raymond James

* Platinum Group Metals Ltd PTM.TO price target raised to C$3 from C$2.70; keeps strong buy rating at Raymond James

$1= $1.01 Canadian Reporting by Bangalore Newsroom; Editing by Jeffrey Hodgson

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