CANADA STOCKS-TSX could get early boost from energy shares

Thu Jan 15, 2009 8:15am EST
 
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TORONTO Jan 15 (Reuters) - Toronto's key stock index could rebound to open higher on Thursday as a rise in the price of oil, a key Canadian export, may lend support to the resource-heavy TSX following a steep selloff the previous session.

Toronto's energy sector accounts for about 22 percent of the overall index, so its moves, which are often influenced by oil prices, tend to set the tone for the broader index.

But the weighty financial sector, home to Canadian banks and insurers, could weigh on the index given concerns out of the United States that banks there could post additional losses stemming from the credit crisis.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE is coming off a sharply lower close as jitters about upcoming corporate earnings and the state of the global economy weighed on investor sentiment.

Here is some of the news that may affect the market:

OIL EDGES HIGHER AFTER EARLY DROP

Oil edged up nearer to $38 a barrel on Thursday after an early $1 fall, but more glum figures from world markets put a cap on further gains. [ID:nLF147418]

SHAREHOLDER OF AIR CANADA PARENT TO OPPOSE WINDUP

One of the largest shareholders of Air Canada's ACa.TO parent, ACE Aviation Holdings Inc ACEa.TO, said on Wednesday it will oppose ACE's planned windup, saying it is not in the best interest of investors. [ID:nN14483382]   Continued...