TORONTO, Oct 20 (Reuters) - The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE is seen opening higher on Monday, buoyed by rising commodity prices.
The index is seen building on a strong finish from the previous week when it closed up 3.16 percent at 9,562.49 on Friday, snapping its three-week losing streak with a 5.5 percent weekly gain, it’s biggest since October 2002.
Investor sentiment was optimistic in Asia and Europe as global efforts to shore up the banking system were cheered as the cost for banks to borrow from each other fell. [ID:nLK288525]
Here is some of the news that could affect the market.
Oil headed towards $74 a barrel, supported by expectations OPEC may cut output this week to boost prices. [ID:nSYD4652] Gold tracked the price of oil higher, up 3 percent to nearly $803 an ounce [ID:nSP381119]
The end of a spending boom among Canada’s energy companies may be near as the credit crunch forces them to hunker down. The Globe and Mail newspaper reported on Monday that Nexen NXY.TO and Opti OPC.TO plan to delay expansion at its Long Lake oil sands project. [ID:nN20507269]. Most Canadian oil companies will detail their 2009 spending plans later this year. But first, they are readying their third-quarter financial results, due over the next several weeks. [ID:nN17532963]
QLT‘S VISUDYNE SALES FALL
Sales of QLT Inc’s QLT.TO QLTI.O anti-blindness treatment Visudyne dropped 30 percent in the third quarter, citing figures from its global marketing partner Novartis NOVN.VX. [ID:nN20256742]
Brokerage Genuity Capital Markets revised its ratings and price targets on several Canadian REITs, including Boardwalk (BEI_u.TO), Cominar (CUF_u.TO), and RioCan (REI_u.TO). Genuity also raised Brookfield Properties BPO.TO to hold from sell, and cut the price target to C$15.25 from C$18. [ID:nWNAB8409]
Brokerage Dundee Securities cut its ratings and targets on some Canadian asset managers, including AGF Management (AGFb.TO). It said a decline in securities valuations is “savagely” reducing assets under management levels for the industry. [ID:nWNAB8519]
Canada’s government may start guaranteeing loans the country’s banks extend to other financial institutions in an attempt to keep the playing field level after a bevy of multibillion-dollar bailouts globally, the Globe and Mail newspaper reported. [ID:nN20505178]
A sharp drop in sales of automotive products knocked down Canada’s wholesale trade in August by a steeper-than-expected 1.5 percent from July, according to a Statistics Canada report. [ID:nN20480398]
Canada’s financial regulations have left it in relatively good shape in the midst of a global economic crisis and should be seen as a model for world leaders slated to meet next month in Washington to address the turmoil, Finance Minister Flaherty said in a television interview [ID:nN19676834]
$1=$1.XX Canadian Reporting by Ka Yan Ng; Editing by Theodore d'Afflisio