July 30, 2013 / 12:54 PM / in 4 years

CANADA STOCKS-TSX set to open lower as Potash Corp shares dive

July 30 (Reuters) - Canada's main stock index looked set to open lower on Tuesday, reversing the previous session's gains, with Potash Corp shares expected to be a major decliner after a surprise strategic shift by a Russian rival.

Russia's Uralkali has dismantled one of the world's largest potash partnerships by pulling out of a venture with its partner in Belarus, a move it expects will cause global prices to plunge by 25 percent.

Frankfurt-traded shares in Potash Corp and Agrium Inc fell 10.2 percent and 5.9 percent, respectively.

TOP STORIES

* BP Plc's $20 billion Gulf of Mexico oil spill trust fund has almost run out after provisions for compensation costs so far leaped by $1.4 billion in the second quarter.

* Miner African Barrick Gold, battling a plunge in the price of bullion, identified more cost cuts to help engineer a turnaround after sinking to a first-half loss on the back of a $727 million impairment charge.

* Oil sands producer MEG Energy Corp forecast a strong second half as it expects production to begin at the next phase of its flagship project in the fourth quarter.

* WestJet Airlines Ltd reported a 5 percent rise in second-quarter profit and said it expected traffic and revenue growth to remain strong in the current quarter.

* Thomson Reuters posted a 2 percent rise in second-quarter revenue on the strength of its legal and tax and accounting businesses, and reaffirmed its forecast for 2013.

* TD Bank Group said it expects to report a third-quarter net loss in its insurance business due to floods in Alberta and hailstorms in the Greater Toronto area, joining a list of Canadian companies hurt by bad weather.

MARKET SNAPSHOT

* Canada stock futures traded down 0.44 percent

* U.S. stock futures , , were up around 0.2 percent and 0.35 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 282.8566; fell 0.46 percent

* Gold futures : $1,320.9; fell 0.56 percent

* US crude : $103.44; fell 1.06 percent

* Brent crude : $107.1; fell 0.33 percent

* LME 3-month copper : $6,762.75; fell 1.68 percent

CANADIAN STOCKS TO WATCH

* African Barrick Gold : The miner is being sued in Britain's High Court by a group of Tanzanians who say it was complicit in the killing by police of at least six villagers at one of its mines in incidents dating back two years.

ANALYSTS' RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

* Fiera Capital : National Bank Financial cuts to sector perform from outperform, says that it expects management fees to remain under pressure as the mix of lower-fee fixed income assets continues to rise.

* REITs: National Bank Financial cuts target price of CAP REIT to C$25.75 from C$27.25 and Cominar <REIT CUF_u.TO> to C$25.50 from C$26.25, says market sentiment changes continue to impact them.

* TransForce : CIBC cuts target to C$23 from C$23.50 to reflect the ongoing challenges within Energy Services and TL divisions of the company.

* Turquoise Hill : CIBC cuts rating to sector underperformer; target to C$5.50 from C$9.50 after the Government of Mongolia said the pending Oyu Tolgoi project finance facility for an underground expansion will now require parliamentary approval.

ON THE CALENDAR

* Major Canadian economic data includes producer price index and raw materials prices

* Major U.S. events and data includes redbook and consumer confidence

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