Toronto stocks to open higher on bargain hunting

Wed Sep 10, 2008 9:23am EDT
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*Oil stabilizes after OPEC says to cut output

*CIBC World Markets cuts TSX year-end targets

*Transat AT reports third-quarter loss on high fuel

TORONTO, Sept 10 (Reuters) - The Toronto Stock Exchange's main index was poised for a higher open on Wednesday following steep losses in the previous session, as oil stabilized but metals slumped, and as the market edges closer to bear territory.

Investors could buy stocks in the heavyweight energy sector, as the price of crude stabilized after a surprise decision by the Organization of the Petroleum Exporting Countries to cut production.

Investors could also flock to the resource-laden materials group, despite softness in the price of bullion and as base metals fell, as they snap up stocks at bargain basement prices.

Bargain hunters will likely keep the benchmark index up as investors face the reality that a bear market is near, said Joe Ismail, a technical analyst at Maison Placements Canada.

"We're coming up to that very critical juncture that a lot of investors are looking at," said Ismail.

"Are we going to breach that area or not? We'll try to sustain the level above that critical breakdown in the market."   Continued...