December 3, 2008 / 1:53 PM / 10 years ago

CANADA STOCKS-TSX poised to open lower as resources, RIM weigh

TORONTO, Dec 3 (Reuters) - The Toronto Stock Exchange’s main index could open lower on Wednesday as oil and gold prices sag and BlackBerry maker Research in Motion Ltd RIM.TO cut its third-quarter profit and revenue outlook.

On Tuesday, the S&P/TSX composite index .GSPTSE fell 78.4 points, or 0.93 percent, to 8,327.81 as the Toronto Stock Exchange’s main index ended a see-saw session as news that insurer Manulife Financial (MFC.TO) will issue new stock offset rallying energy shares amid talk of a takeover of Nexen Inc NXY.TO.

Here is some of the news that may affect the market.


Research in Motion Ltd RIM.TO RIMM.O cut its third-quarter profit and revenue outlook well below Wall Street expectations, as subscriber growth slowed, margins fell and amid sharp currency swings. The BlackBerry maker made the announcement on Tuesday night. [ID:nL3134327]

As well, RIM said on Wednesday it will offer C$1.50 a share in cash for Certicom in a deal valued at about C$66 million. [ID:nWNAB9140]


UBS cuts Manulife Financial Corp (MFC.TO) price target to C$20 from C$26, while Genuity cuts Bank of Nova Scotia (BNS.TO) price target to C$35 from C$42. For more research details, please see: [ID:nBNG407356] [CA-RCH]


Shares of banks and insurers could be in focus after Manulife Financial on Tuesday provided a profit warning and said it would issue C$2.1 billion in common equity [ID:nN02548876], while Bank of Nova Scotia said its quarterly profit sank 67 percent. [ID:nN02523875]


Oil CLc1 retreated below $47 a barrel after rising earlier and gains could be further limited as signs of weakening U.S. oil demand are expected to emerge in weekly data due later in the day. [ID:nSP68559]


Gold XAU= eased as the U.S. dollar firmed against the euro, denting the metal’s appeal as a currency hedge [ID:nL329415], while industrial metals slipped as concerns over weakening demand, rising inventories weighed on sentiment. [ID:nL374725]


Canada’s minority Conservative government may seek the temporary suspension of Parliament to stop opposition parties from voting it out and taking power, an aide to Prime Minister Stephen Harper said on Tuesday. [ID:nN02696]


Thailand led a global charge to cut interest rates on Wednesday with countries from Europe to New Zealand expected to follow in the next few days to fight an unrelenting financial crisis. [ID:nHKG108699]


A grimmer outlook for the euro zone economy hit global stocks on Wednesday and helped send the 30-year euro zone government bond yield to a historic low as investors looked for aggressive interest rate cuts in Europe this week. [MKTS/GLOB] ($1=$1.26 Canadian) (Reporting by Jennifer Kwan)

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