May 27, 2010 / 1:00 PM / 7 years ago

CANADA STOCKS-Higher resources may lift TSX; banks could drag

4 Min Read

May 27 (Reuters) - Toronto's resource-heavy index could open higher on Thursday, helped by rising commodity prices and a rebound in global equity markets, but results by Canadian banks could limit the gains.

Profits at three big Canadian banks rose but came in short of lofty expectations as trading headwinds, the strong currency and taxes took the shine from improving loan losses. [ID:nN27201801]

But elsewhere, the euro and European shares pushed higher after China denied a report it was looking to cut its euro zone sovereign debt holdings. [MKTS/GLOB]

U.S. stock index futures pointed to a higher open after China denied the report. [.N]

Here is some news that could affect stock prices:

Rbc Profit Misses Estimates

Royal Bank of Canada (RY.TO) reported a lower-than-expected quarterly profit on Thursday as the strong Canadian dollar ate into revenue and loan losses edged up from the previous quarter. [ID:nN26226162]

Cibc Profit Misses Expectations

Canadian Imperial Bank of Commerce (CM.TO) on Thursday posted a lower-than-expected quarterly profit. [ID:nN26263872]

Td Bank q2 Profit Up

Toronto-Dominion Bank (TD.TO) said on Thursday its profit rose in the second quarter as loan losses fell to their lowest level in six quarters. [ID:nN27252817]

Oil Rises Further

Crude oil prices rose above $73 on Thursday, supported by gains in Asian and European equity markets and after the previous day's U.S. official oil data showed an increase in fuel demand. [O/R]

Lead, Copper Rises

Lead rose nearly 5 percent on Thursday, while copper rose nearly 2 pct as panic paused over euro zone debt and investors eyed a bounce in the euro and gains in wider financial markets like oil and equities. [MET/L]

Gold Edges Up

Gold rose for a fourth day in a row on Thursday as worries about Europe's debt woes attracted buying from investors, while holdings in the world's largest bullion-backed exchange-traded fund jumped to another record. [GOL/]


Neo Material Technologies Inc NEM.TO said on Thursday it acquired 50 percent of the issued and outstanding shares plus voting control of Buss & Buss Spezialmetalle GmbH. [ID:nWNAB4151]

Churchill to Sell Shares

Construction company Churchill Corp CUQ.TO said on Wednesday it would raise C$175.5 million ($165.6 million) through equity and debt to fund a portion its acquisition of Seacliff Construction Corp SDC.TO. [ID:nSGE64P0L2]

Whiterock Reit to Add Office Properties

Whiterock Real Estate Investment Trust WRK_u.TO said on Wednesday it agreed to purchase and lease office properties worth C$147 million, and will fund this by raising about C$34 million through an equity offering. [ID:nSGE64P0L4]

Ambrilia Obtains Stay Order Extension

Ambrilia Biopharma Inc AMB.TO said on Wednesday it obtained fifth extension of CCAA stay order. [ID:nWNAB3968]

Research Roundup

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

Note: All values in RESEARCH ROUNDUP in Canadian currency, unless otherwise stated.

* Bank of Montreal (BMO.TO) price target raised to $68 from $65; rating neutral at Macquarie

* Iberian Minerals Corp IZN.V price target cut to $0.80 from $1; rating outperform at Macquarie

* Laurentian Bank of Canada (LB.TO) price target cut to $54 from $56; rating outperform at Macquarie

* Parex Resources Inc PXT.V price target raised to $5.40 from $5.30; rating buy at Versant

* Red Back Mining Inc RBI.TO price target raised to $32 from $30; rating buy at UBS

* Trican Well Service Ltd TCW.TO rating raised to buy from neutral at UBS ($1=1.06 Canadian) (Reporting by Bangalore newsroom, editing by Jeffrey Hodgson)

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