TORONTO, May 20 (Reuters) - Toronto’s main stock market index could open higher on Wednesday as rising oil and gold prices provide a boost to the resource-heavy market.
The heavily weighted financial issues could also see activity after Bank of America Corp (BAC.N) raised $13.47 billion as it sought to meet government requirements for capital raising following the results of a stress test on U.S. banks. [nN19416813]
Meanwhile, investors will also take time to digest the latest Canadian economic data that showed the country’s annual inflation rate in April dropped to a 14-year low of 0.4 percent from 1.2 percent in March on lower energy prices. [nN20487391]
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE rallied sharply on Tuesday, rising 3.5 percent to 10,100.95 and reclaiming most of last week’s losses, as higher oil prices boosted energy issues and the TSX caught up with a rise by U.S. stocks on Monday when the Toronto market was closed.
Here are some of the stories that may affect the market:
Oil prices firmed above $60 a barrel on Wednesday to touch a new six-month high on bullish inventory data and refinery accidents in the United States, in spite of weak market fundamentals. [nSIN233823]
Gold rose in Europe on Wednesday, supported by a weaker dollar and firmer oil prices, with a report showing a jump in first-quarter gold demand also supporting appetite for bullion. [nLK309625]
Canaccord Capital Inc CCI.TO reported a surprise fourth-quarter profit, helped mainly by a 24 percent drop in expenses, and said its board had approved the continued suspension of its quarterly dividend to preserve capital. [nBNG435185]
Talisman Oil & Gas Ltd, a unit of Talisman Energy Inc TLM.TO, discovered a significant gas condensate field in the Niscota Block of the Andes foothills in Colombia. [nBNG429932]
CANADA‘S VELAN Q3 PROFIT JUMPS
Canada’s Velan Inc (VLN.TO), a maker of industrial valves, posted a four-fold jump in quarterly profit, as a strong U.S. dollar helped its North American, Korean and Portuguese operations. [nBNG396273]
Following is a summary of research actions on Canadian companies reported by Reuters on Wednesday. For more, see [RCH/CA]
*RBC raises Rogers Communications (RCIb.TO) price target to C$39 from C$38; Rating Outperform
*Bernstein raises Canadian Natural Resources (CNQ.TO) price target to C$78 from C$74; Rating Market Perform
*Bernstein raises EnCana Corp (ECA.TO) price target to C$70 from C$67; Rating Outperform ($1=$1.15 Canadian) (Reporting by Scott Anderson, Editing by Chizu Nomiyama)