TORONTO, Nov 6 (Reuters) - The Toronto Stock Exchange’s main index .GSPTSE is seen opening lower on Thursday as the price of oil slid and some Canadian companies provided sour forecasts.
Canadian Natural Resources said delays to its Horizon oil sands project have boosted construction costs by C$441 million, while biotech companies Biovail and Angiotech said they expect tough quarters ahead.
The index closed 2.3 percent lower on Wednesday. Oil and mining shares fell as commodity prices dropped on worries that demand is slowing due to a faltering world economy.
Here is some of the news that may affect the market.
Canadian Natural (CNQ.TO) quarterly profit quadrupled on the back of higher oil prices but costs for its Horizon development project are rising. [ID:nBNG401176] As oil prices are less than half their July peak amid the economic turmoil and lowered access to capital, spending plans for 2009 are expected to be leaner across the oil and gas sector.
Oil slipped further below $64 a barrel after the Bank of England cut interest by an unprecedented 150 basis points. The fall extended a 7 percent drop in crude oil in the previous session as heightened fears of economic slowdown persist. [ID:nSYD166191]
Biovail BVF.TO reported a lower profit as generic versions of its key Wellbutrin anti-depressant and restructuring charges bit into results. It also warned that the hangover from the restructuring would linger for the next few quarters. [ID:nN06281944]
Angiotech Pharmaceuticals ANP.TO said it reported a loss and warned that there was “no assurance” it will have adequate liquidity to satisfy its financial obligations next year and beyond. [ID:nWNAB9137]
Gold XAU= rose to session highs after three European central banks cut interest rates. [ID:nL652768] Kinross Gold (K.TO) said profit jumped 64 percent on stronger gold prices and higher production, while Iamgold (IMG.TO) reported a decrease in quarterly results.
Canaccord Capital CCI.TO and GMP Capital Trust GMP_u.TO have been hammered by poor capital market conditions since mid-year. Both firms focus on advising small to medium-sized resource companies, which investors shunned as commodity prices and equity markets have plunged in recent months. Canaccord swung to a quarterly loss and suspended its dividend [ID:nBNG84374], while GMP Capital said profit dropped 82 percent and it cut 37 jobs. [ID:nBNG418525]
THOUSANDS PRE-ORDER BLACKBERRY STORM IN BRITAIN
Research in Motion’s RIM.TO first touch-screen BlackBerry smartphone will go on sale in Britain on Nov. 14, and thousands of customers have already pre-ordered the device, exclusive UK sales partner Vodafone said on Thursday. [ID:nL6683552]
BMO cut the price target on Kingsway Financial (KFS.TO), while RBC cut the specialty insurer to sector perform from outperform, the day after Kingsway posted a third-quarter loss on poor underwriting results and lower investment income. [ID:nN04317750]
For a summary of research actions on Canadian companies, please double click [RCH/CA] ($1=$1.16 Canadian) (Reporting by Ka Yan Ng; Editing by Tom Hals)