CANADA STOCKS-TSX may open lower, hurt by soft commodity prices

Thu Aug 11, 2011 8:44am EDT
 
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 Aug 11 (Reuters) - Toronto's main stock market index was
set to open lower on Thursday, with easing gold and oil prices
and weaker European equities expected to further weigh on
investor sentiment.
 FACTORS TO WATCH
 * Canadian equity futures <0#SXF:> pointed to a lower
open.
 * U.S. stock futures pared losses after data showed initial
claims for jobless benefits fell to a four-month low last week
and were slightly better than expected. [.N]
 * Sharp declines in French bank shares dragged the
financial sector and European shares lower, with traders citing
growing concern about the outlook for French lenders. [.EU]
 * Markets in Asia were largely lower, with the Nikkei
resumed falling following a rebound the day before, after
rumors about the health of French banks reignited concerns over
the euro zone's debt crisis.
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 COMMODITY PRICE MOVES
 * The Thomson Reuters-Jefferies CRB index .CRB, a global
commodities benchmark, fell 0.54 percent in early trade.
 * Brent crude fell below $106 a barrel, erasing earlier
dollar-fuelled gains, on investor concerns that the European
debt crisis could spill over to France and harm global economic
growth. [O/R]
 * Gold prices slipped more than 1 percent from record highs
as a move by CME Group to hike margins for trading COMEX gold
futures prompted some investors to cash in gains after an early
rally. [GOL/]
 * Copper prices rose, regaining a semblance of poise as
financial markets stabilized, fears of economic meltdown
receded and an appreciation of China's currency suggested it
was confident about its growth prospects. [MET/L]
 CANADIAN STOCKS TO WATCH
 * Kinross Gold (K.TO: Quote): The gold miner more than doubled its
quarterly profit and raised its dividend payout on Wednesday,
as surging bullion prices and acquisition-related production
growth helped boost results. [ID:nN1E7791QJ]
 * Iamgold Corp. (IMG.TO: Quote): The miner said on Wednesday its
second-quarter operating profit more than tripled, driven by a
higher gold price and increased output. [ID: nN1E77921A]
 * Open Text (OTC.TO: Quote): The business software company, posted
a 12 percent rise in quarterly adjusted profit on Wednesday and
said recent acquisitions would help its global growth.
[ID:nN1E7791HI]
 * Semafo Inc. (SMF.TO: Quote): posted a higher second-quarter
profit as soaring gold prices offset lower gold production.
[ID:nL3E7JA4S4]
 * Aurizon Mines Ltd. (ARZ.TO: Quote): The gold miner's
second-quarter profit rose 17 percent helped by surging gold
prices and higher output at Casa Berardi, its key producing
mine in Quebec. [ID:nL4E7JB01B]
 * SouthGobi Resources Ltd. (SGQ.TO: Quote): The coal miner posted
a higher quarterly net profit, driven mainly by a rise in
average realized coal prices. [ID:nL3E7JA4XX]
 * North American Palladium Ltd. PDL.TO: The precious
metals company reported a second-quarter profit helped by a
69-percent rise in quarterly palladium production at the
company's flagship mine in Quebec and maintained its full year
palladium production forecast. [ID:nL3E7JA576]
 * Atrium Innovations ATB.TO: The dietary supplement-maker
posted a rise in its quarterly profit, helped mainly by strong
demand for its products. [ID:nL3E7JA4T9]
 * Birchcliff Energy Ltd. (BIR.TO: Quote): The company's
second-quarter earnings nearly doubled as it cashed in on
higher production and lower operating costs, and it backed its
full-year production outlook. [ID:nL3E7JA4UK]
 * Miranda Technologies MT.TO: The technology provider's
second-quarter net income remained unchanged, but beat
estimates, as the television broadcast technology provider's
sales growth was offset by higher costs. [ID:nSGE77A00X]
 * Cineplex Inc. (CGX.TO: Quote): The company reported a 40 percent
drop in second-quarter profit, hurt by one-time charges and
higher income tax expense. [ID:nSGE77A01S]
 ANALYST RECOMMENDATIONS
 Following is a summary of research actions on Canadian
companies reported by Reuters. [RCH/CA]
 * Extendicare REIT EXE_u.TO price target cut to C$8.75
from C$10 at RBC
 * Genivar Inc GNV.TO price target cut to C$30 from C$34
at Stonecap
 * Pure Technologies Ltd (PUR.TO: Quote) price target cut to C$4.50
from C$5 at Stonecap
 ($1= $0.99 Canadian)
 (Reporting by Karan Khemani; Editing by Jeffrey Hodgson)