September 28, 2012 / 12:47 PM / in 5 years

CANADA STOCKS-TSX set to open lower, RIM to rise

Sept 28 (Reuters) - Canada’s main stock index looked set to open lower on Friday, as investors remained cautious ahead of results from a stress test of Spanish banks, but BlackBerry maker Research In Motion Ltd was set to shoot higher after results.

TOP STORIES

* Research In Motion Ltd reported a narrower-than-expected loss on Thursday and the struggling BlackBerry maker bolstered its cash reserves, sparking optimism ahead of the launch of its make-or-break line of next-generation smartphones.

* Spain announced a crisis budget for 2013 based mostly on spending cuts on Thursday in what many see as an effort to pre-empt the likely conditions of an international bailout.

* Newmont Mining Corp plans to shed workers and cut costs at its giant Indonesian copper and gold mine as it loses a million dollars a day in cash flow because of low output that will continue through next year.

* President Francois Hollande’s Socialist government unveiled sharp tax hikes on business and the rich in a 2013 budget aimed at showing France has the fiscal rigor to remain at the core of the euro zone.

* Canacol Energy reported a fall in fourth-quarter profit on lower average daily sales volumes.

MARKET SNAPSHOT

* Canada stock futures traded down 0.14 percent

* U.S. stock futures , , were down around 0.27 percent to 0.39 percent

* European shares, were down

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 307.78; rose 0.15 percent

* Gold futures : $1,778; rose 0.02 percent

* US crude : $91.83; fell 0.02 percent

* Brent crude : $112.66; rose 0.58 percent

* LME 3-month copper : $8,247.5; rose 0.89 percent

CANADIAN STOCKS TO WATCH

* Enbridge Inc. : The pipeline company has won regulatory approval to add an Alberta crude pipeline at a cost of up to C$1.4 billion to move output from Imperial Oil Ltd’s Kearl oil sands project and increasing production from others in the region, the company said on Thursday.

* Husky Energy Inc. : Members of United Steelworkers union Local 624 ended a four-month strike at the company’s 155,000 barrel per day Lima, Ohio refinery late on Thursday night, just hours after it began a search for replacement workers.

* Lundin Mining : The Canadian-Swedish group is hunting for zinc and copper mine acquisitions and further ways to boost production, CEO Paul Conibear said in Swedish business daily Dagens Industri.

ANALYST RECOMMENDATIONS

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

* Glentel Inc. : Canaccord Genuity raises target price to C$18 from C$15 following the acquisition of a majority interest in AMT Group, Australia’s multi-carrier wireless phone distributor.

* Osisko Mining Corp. : RBC assumes coverage with outperform rating, says the malartic mine is well-positioned to provide the company with a long-term stream of free cash flow.

* Queenston Mining Inc. : CIBC cuts target price to C$6.50 from C$7.25 on changes in valuation model which assumes higher costs for the Upper Beaver project.

* Research In Motion Ltd. : Barclays raises target price to $7 from $6, BMO raises target price to $8 from $7, NBF raises to outperform from sector perform on the BlackBerry maker’s better-than-expected second-quarter results.

* Sterling Resources Ltd. : RBC raises price target to C$1.90 from C$1.75, says success in the company’s upcoming exploration in the Romanian Black Sea could dramatically enhance its outlook.

ON THE CALENDAR

* Major Canadian economic data includes Canadian GDP and budget balance

* Major U.S. events and data includes personal income and consumption, Chicago PMI and Reuters/University of Michigan sentiment

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