June 7, 2011 / 12:42 PM / in 6 years

CANADA STOCKS-TSX may open higher with commodities firm

June 7 (Reuters) - Toronto’s resource-heavy main stock index looked set to open higher on Tuesday, helped by slightly firmer commodity prices and the belief among some investors that shares offer good value after five losing sessions.

FACTORS TO WATCH

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

* U.S. stock index futures rebounded a day after the S&P 500 hit its lowest level in over two months, taking out important technical levels as investors grew more bearish on the economy. [.N]

* European shares were higher in early trade, with miners among the gainers and German utility E.ON (EONGn.DE) up after bullish comment from UBS. [.EU]

* Asian markets were mixed with Nikkei snapping a three-day losing streak to close up 0.7 percent as hedge funds covered short positions and foreigners bought back on cheap valuations.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.12 percent in early trade.

* Oil rose slightly, boosted by dollar weakness, but gains were muted due to expectations OPEC might raise its production target this week and to worries about the demand outlook. [O/R]

* Gold prices firmed as the dollar retreated to a one-month low against a basket of currencies, hurt by warnings from a Chinese foreign exchange official of the risks of excessive dollar holdings. [GOL/]

* Copper steadied supported by a soft dollar and prospects of a demand pick-up into the second half but patchy U.S. economic data and perceptions of a slowdown in China checked its advance. [MET/L]

CANADIAN STOCKS TO WATCH

* Sino-Forest Corp. TRE.TO: The company said late on Monday that an independent committee set up to review fraud allegations raised by Muddy Waters, appointed accounting firm PricewaterhouseCoopers to assist with the investigations. [ID:nL3E7H71M3]

* Crocotta Energy Inc. CTA.TO: The oil and natural gas company said liquid yields at the Edson field in west central Alberta were lower-than-expected in the first quarter, due in part to a repair at a plant and lower liquids content in the overall gas stream at Edson. [ID:nL3E7H71NY]

* Kinross Gold (K.TO): The gold miner said that a third ball mill at its Paracatu mine in Brazil is up and running, and that the ore feed rate will ramp up to 100 percent by the third quarter. [ID:nN06290387]

* Thomson Reuters Corp. (TRI.TO): The news and information provider said it plans to sell a unit that supplies healthcare data and analysis to companies, government agencies and health professionals. [ID:nN06295023]

* Minera Andes MAI.TO: The miner posted a quarterly profit helped primarily by increased production from its flagship San Jose mine and higher gold and silver prices. [ID:nL3E7H62WT]

ANALYST RECOMMENDATIONS

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

* Bird Construction Inc (BDT.TO) price target cut to C$12 from C$13.33; rating sector performer at CIBC

* North American Energy Partners Inc (NOA.TO) price target cut to C$9 from C$9.50; rating sector performer at CIBC

* Opti Canada Inc OPC.TO rating cut to sector underperformer from sector outperformer at CIBC

* Petrobank PBG.TO price target cut to C$32 from C$34 at CIBC

* Progress Energy Resources Corp PRQ.TO price target raised to C$18 from C$15 at CIBC

* Secure Energy Services Inc (SES.TO) price target raised to C$10.50 from C$10; rating sector performer at CIBC

* Total Energy Services Inc (TOT.TO) price target raised to C$22 from C$21; rating sector outperformer at CIBC

$1= $0.97 Canadian Reporting by Kishan Nair; Editing by Jeffrey Hodgson

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