August 2, 2012 / 1:02 PM / in 5 years

CANADA STOCKS-TSX set to open lower as commodity prices fall

Aug 2 (Reuters) - Canada’s main stock index looked set to open lower on Thursday, as commodity prices traded lower after the European Central Bank left interest rates unchanged, waiting to see if inflation and the euro zone economy slows further.

TOP STORIES

* The European Central Bank held its main interest rate at a record low of 0.75 percent on Thursday, waiting to see whether inflation and the euro zone economy slow further before deciding on any fresh cut in borrowing costs.

* Canadian pipeline operator Enbridge Inc reported a sharp fall in second-quarter profit due to losses on financial derivatives.

* Valeant Pharmaceuticals International reported a second-quarter net loss on Thursday as costs rose, but adjusted cash earnings rose and the company raised its forecast for full-year cash results.

* Clothing maker Gildan Activewear Inc reported a 11 percent decline in third-quarter profit, as lower selling prices for print wear hurt the company’s margins.

* Ritchie Bros Auctioneers Inc, which auctions industrial equipment, posted a 17 percent rise in profit on strong equipment pricing and demand and the company raised its quarterly dividend by 9 percent.

MARKET SNAPSHOT

* Canada stock futures traded lower

* U.S. stock futures , , turned negative

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : down 0.44 percent

* Gold futures : $1,609.2; rose 0.34 percent

* US crude : $89.24; rose 0.37 percent

* Brent crude : $106.91; rose 0.9 percent

* LME 3-month copper : $7,422.25; fell 0.04 percent

CANADIAN STOCKS TO WATCH

* Petrominerales Ltd. : The oil and gas producer’s second-quarter adjusted profit fell 66 percent on lower oil prices and oil sales.

* Héroux-Devtek Inc. : The aerospace and industrial products maker said first-quarter profit rose 8 percent on higher deliveries to commercial aircraft and business jet markets.

* SouthGobi Resources Ltd. : Chalco has decided to extend its offer for a majority stake in Mongolia-focused coal miner for the second time, the Chinese aluminum giant said, in the face of stiff political opposition in Mongolia.

* Wi-Lan Inc : The patent licensing company reported a second-quarter loss on higher litigation costs.

* Constellation Software Inc. : The software company reported a decline in second-quarter profit on a rise in staff-related expenses and a lower income tax benefit.

* First Quantum Minerals Ltd. : The base metal miner said on Wednesday its second-quarter profit fell 9 percent as lower copper prices and higher production costs outweighed higher copper and gold sales volumes.

* New Gold Inc. : The miner posted a lower quarterly profit as it took a one-time charge related to redemption of its senior notes.

* Enbridge Inc. : Canadian regulators plan to carry out a series of safety audits at the pipeline operator in coming months to make sure its pipeline control-room procedures, heavily criticized last month by a U.S. watchdog, meet acceptable standards.

Separately, Enbridge said that it had completed repairs on a ruptured pipeline from Canada that has been shut for five days following an oil leak in rural Wisconsin.

* Kinross Gold Corp. : The miner named Paul Rollinson its new CEO late on Wednesday, replacing long-time CEO Tye Burt, who spearheaded its massive acquisition of Red Back Mining that has so far failed to live up to expectations.

* Research in Motion : The BlackBerry maker refuted on Wednesday a new round of Indian media reports, which claim that the company has granted the Indian government the encryption keys to its secure corporate email and messaging services.

ANALYST RECOMMENDATIONS

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

* Genivar Inc. : CIBC cuts price target to C$26 from C$30 and rates sector performer after the company acquired WSP, a company having significantly lower margins compared to Genivar

* Great-West Lifeco Inc. : Canaccord Genuity cuts price target to C$23 from C$24 and CIBC cuts target to C$24 from C$25 on slightly lower than expected second-quarter earnings and weaker performance in U.S.

* Kinross Gold Corp. : Credit Suisse cuts price target of the U.S.-listed shares to $10 from $11 and rates neutral on an increase in Tasiast capex following the CEO change

* Torstar Corp. : National Bank Financial price target to C$9.75 from C$11 and CIBC cuts target to C$10 from C$12 citing lower-than-expected second-quarter results and a weaker H2 outlook

* Westjet Airlines : BMO raises price target to C$19 from C$18.50 and rates outperform on expectations of 5-10 percent growth in passenger traffic in the third quarter compared to second-quarter

ON THE CALENDAR

* No major Canadian economic data scheduled for release

* Major U.S. events and data includes Factory orders and ICSC retail sales

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