August 12, 2011 / 12:32 PM / 6 years ago

CANADA STOCKS-TSX may open higher as commodities edge up

5 Min Read

Aug 12 (Reuters) - Toronto's main stock index looked set to open higher on Friday, building on gains of nearly 3 percent in the previous session, helped by a rise in the price of commodities including oil.

Factors to Watch

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

* U.S. futures were higher on Friday, signaling stocks would extend the previous day's big gains, after a rally in Europe and another strong outlook from a technology company. [.N]

* European shares extended gains, with banking stocks rising further following the short-selling ban on financial shares by France, Italy, Spain and Belgium. [.EU]

* Markets in Asia were largely high but Tokyo stocks dipped further below the 9,000 line, as the yen's strength prompted foreigners to sell carmakers, pulling Toyota Motor to its lowest level this year. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ To receive an early e-mail of Reuters Morning News Call - Canada -- a preview of market moving news -- Thomson Reuters subscribers can register at [CA/MNC] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Commodity Price Moves

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.24 percent in early trade.

* Oil rose above $108 a barrel, as the dollar weakened and equity markets strengthened, but concerns about oil demand in industrialised nations kept a lid on prices. [O/R]

* Gold prices eased in Europe, extending the previous session's retreat from record highs, as fresh strength in equity markets and gains in the euro versus the safe-haven Swiss franc pointed to sharper appetite for risk. [GOL/]

* Copper steadied as prospects for stronger demand from top consumer China helped sustain prices, while a gloomy outlook for global economic growth and demand prevented gains. [MET/L]

Canadian Stocks to Watch

* Osisko Mining Corp. (OSK.TO): The miner reported a wider quarterly loss as it was hurt mainly by a $10.9 million write-off on withdrawal from a joint venture program. [ID:nL3E7JB491]

* European Goldfields EGU.TO: The miner posted a narrower pretax loss for the second quarter and said it had made "major progress" with its Olympias project, on track for first production next year. [ID:nL3E7JC1A1]

* Boardwalk Real Estate Investment Trust (BEI_u.TO): The REIT reported a 1.3 percent rise in second-quarter funds from operations, thanks to slightly higher rental revenue. [ID:nN1E77A1TH]

* Black Diamond Group (BDI.TO): The workforce equipment rental and energy services company reported a threefold increase in second-quarter profit on higher lodging and rental revenue, and said its board approved a two-for-one split of its outstanding common shares. [ID:nL3E7JB461]

* Connacher Oil & Gas Ltd. CLL.TO: The oil sands developer posted a wider quarterly loss as lower crude oil production offset a rise in bitumen production. [ID:nL3E7JB4IF]

* Caspian Energy CEK.TO: The oil and gas company raised going concern doubts as its second-quarter revenue sank to nearly nothing and the company said it does not have the funds to make its July loan payment or its debenture obligations. [ID:nL3E7JB4CO]

Analyst Recommendations

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

* Aurizon Mines Ltd (ARZ.TO) rating cut to sector performer from sector outperformer at CIBC

* Black Diamond Group Ltd (BDI.TO) price target raised to C$42 from C$41 at CIBC

* Canadian Energy Services CEU.TO price target raised to C$14.50 from C$13.33; rating sector perform at RBC

* Canadian Tire Corp (CTC.TO) price target cut to C$69 from C$72 at CIBC

* Enerflex Ltd EFX.TO price target cut to C$16 from C$17 at CIBC

* Extendicare REIT EXE_u.TO price target cut to C$9 from C$10 at CIBC

* Innergex Renewable Energy Inc (INE.TO) price target raised to C$10 from C$9.75 at CIBC

* Manulife Financial Corp (MFC.TO) rating raised to sector outperformer from sector performer at CIBC

* Martinrea International Inc (MRE.TO) price target cut to C$11 from C$13 at CIBC

* New Flyer Industries NFI_u.TO price target cut to C$9 from C$9.50 at CIBC

* Tim Hortons Inc THI.TO price target raised to C$52 from C$46 at CIBC

$1= $0.99 Canadian Reporting by Karan Khemani; Editing by Jeffrey Hodgson

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