September 20, 2010 / 12:28 PM / 7 years ago

CANADA STOCKS-TSX set to climb as gold, commodities rise

Sept 20 (Reuters) - Toronto’s main stock index looked set to open higher on Monday as gold hit a record high and other commodity prices gained, helped by the possibility the Federal Reserve could signal further monetary stimulus this week.

FACTORS TO WATCH

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

* U.S. stock index futures rose, looking to extend Wall Street’s three-week gain as investors await the Federal Reserve’s monetary meeting later in the week. [.N]

* European equities bounced back on Monday, with a jump in Suedzucker on a rise in revenue propelling food and beverage shares into the top gainers. [.EU]

* Asian markets rose while Shanghai shares slipped in thin volumes as investors trimmed positions ahead of regional holidays.

COMMODITY PRICE MOVES

* The Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, rose 0.27 percent in early trade.

* Oil edged higher towards $74 a barrel, after dropping 3.7 percent last week, as investors looked ahead to a Federal Reserve meeting and the prospect of further moves to increase money supply. [O/R]

* Gold hit a record high for the fourth day in a row, boosted by growing expectations for U.S. interest rates to remain exceptionally low as the economy struggles, while silver came in range of 30-year peaks. [GOL/]

* Copper climbed to a fresh five month peak on Monday, buoyed by a falling dollar and market talk of further quantitative easing in the United States. [MET/L]

CANADIAN STOCKS TO WATCH

* Potash Corp (POT.N)(POT.TO): Chinese chemical conglomerate Sinochem Group has formally asked the government to back a bid for the company, a local newspaper reported on Sunday. [ID:nSGE68J009]

* Research In Motion Ltd. RIM.TO: India has asked mobile phone operators to upgrade their networks to help security agencies intercept communication on BlackBerry devices, two government sources said on Monday. [ID:nDEL003435]

* Alimentation Couche-Tard (ATDb.TO): Casey’s General Stores, facing a $2 billion takeover bid from the company, said its annual shareholders meeting will be held as scheduled on Thursday, ignoring a suggestion from Couche-Tard to postpone it. [ID:nSGE68J0HN]

* Fairfax Financial Holdings (FFH.TO): Kuwait Projects Co, Kuwait’s biggest investment company by assets, will sell a 39.2 percent stake in Gulf Insurance Co to Canada’s Fairfax Financial Holdings for $208.6 million, a statement said on Sunday. [ID:nLDE68I09Z]

* Gran Tierra Energy (GTE.TO): The company agreed to acquire a 20 percent working interest in three exploration blocks operated by a unit of ConocoPhillips in Peru, to further expand its presence in the South American country. [ID:nSGE68J0FZ]

* OceanaGold Corp OGC.TO: The gold miner said on Monday it thought a suspended gold and copper project in the Philippines was viable and it was studying funding options. [ID:nSGE68J03D]

* Petrobank Energy and Resources Ltd. PBG.TO: The company could significantly reward investors, thanks to its stakes in two other energy companies, according to the latest edition of Barron‘s. [ID:nN19242381]

ANALYST RECOMMENDATIONS

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

* Gabriel Resources (GBU.TO) rating raised to market perform from underperform at BMO

* RONA Inc. RON.TO price target cut to C$13 from C$15; rating market perform at BMO

$1=$1.03 Canadian Reporting by Bangalore newsroom; editing by Jeffrey Hodgson

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