TORONTO, Jan 8 (Reuters) - Toronto’s main stock index may open higher on Thursday as a rebound in oil prices could be enough to lure investors back into the resource-heavy index after a sharp skid the previous session.
The energy sector makes up about 22 percent of the overall index, so the direction of oil prices often has a great deal of influence on the group‘s, and overall market‘s, direction.
The S&P/TSX composite index .GSPTSE is coming off its first lower close after a string of six consecutive sessions of gains that resulted in a jump of 14 percent.
Wednesday’s lower close was pegged to a decline in oil and gold shares, which fell along with commodity prices, while some profit-taking set in after six sessions of gains.
Here is some of the news that may affect the market:
OIL UP TO $43 AFTER WEDNESDAY‘S 12 PCT FALL
Oil traded higher on Thursday, reaching $43 a barrel after diving 12 percent the previous session, partly due to higher-than-expected U.S. crude stocks data that hardened evidence of weakening demand. For more see [ID:nL8415011].
GOLD STEADIES AS OIL STABILIZES
Gold steadied above $840 an ounce in Europe on Thursday as oil prices stabilized after a 12 percent slide, and traders awaited key U.S. non-farm payrolls data due on Friday for fresh impetus. [ID:nL8139553]
JEAN COUTU POSTS LOSS ON RITE AID PROVISION
Jean Coutu Group (PJCa.TO) reported a quarterly loss on Thursday as it recorded a preliminary provision related to the value of its investment in U.S. pharmacy company Rite Aid Corp (RAD.N). See [ID:nN08257406]
KINROSS PLOTS 32 PCT JUMP IN ‘09 GOLD OUTPUT
Kinross Gold Corp (K.TO) said on Wednesday it plans to spend $460 million this year boosting production by 32 percent to as much as 2.5 million ounces. [ID:nN07487990]
RESEARCH ROUNDUP: GENUITY UPS MINING PRICE TARGETS
Following is a summary of research actions on Canadian companies. For more, please see [RCH/CA]
* Genuity raises HudBay Minerals (HBM.TO) price target 14.6 percent to C$5.50.
* Genuity raises Inmet Mining IMN.TO price target 21 percent to C$23.00.
* Genuity raises Lundin Mining (LUN.TO) price target 13 percent to C$2.15.
* Raymond James ups WestJet Airlines (WJA.TO) price target 7 percent to C$15.
ECONOMIC DATA SLATE
The Ivey Purchasing Managers Index release for December is the only piece of domestic data due on Thursday, but it will not likely have much impact on the market ahead of the more key December jobs data due out on Friday. ($1=$1.20 Canadian) (Reporting by Frank Pingue; Editing by James Dalgleish)