September 9, 2008 / 1:05 PM / in 9 years

Resources to hit Toronto stocks,financials may help

*Oil slips as OPEC expected to maintain targets

*Gold, base metals sag on U.S. dollar, demand fears

*Canada housing starts rise more than foreseen in August

*CI Financial in talks to sell Blackmount -report

TORONTO, Sept 9 (Reuters) - The Toronto Stock Exchange’s main index is poised for a mixed open on Tuesday, as worries over slowing growth weighs on resource stocks and the glow of the U.S. bailout plan helps the financial sector.

Energy stocks could be a drag on the market as the price of crude slipped, despite the threat of Hurricane Ike to the U.S. Gulf energy infrastructure, on expectations that OPEC will not cut output.

Materials, home to resource shares, could weigh as gold and base metals sagged on a firmer U.S. dollar and demand fears.

Combined, energy and materials make up about half of the benchmark index’s total weight.

“I think we’re entering a worldwide period of economic slowness,” said Douglas Davis, president at Davis-Rea.

“Commodities will act like commodities, which is they are cyclical. They will act like cyclical stocks and go lower.”

Financials may extend Monday’s 1.5-percent rally after the U.S. government took control of mortgage finance firms Fannie Mae FNM.N and Freddie Mac FRE.N.

But Davis said the rally may fizzle on profit-taking.

The S&P/TSX composite index .GSPTSE begins the day at 12,634.64, down 181.78 points, or 1.42 percent, yanked lower by resources and technology shares.

The technology sector could extend losses on BlackBerry-maker Research In Motion RIM.TO, which fell 3.8 percent to C$108.91 on Monday, after a report said the global smartphone market is being hurt by the slowing economy. [ID:nN083328]

As well, media reports on Tuesday said Motorola Inc MOT.N claimed in a lawsuit that RIM is illegally pilfering its workers in violation of an agreement between the two rivals. Motorola claims RIM has targeted at least 40 Motorola workers who can’t be employed by RIM without revealing trade secrets.

The Globe and Mail said mutual fund manager CI Financial Income Fund CIX_u.TO is in preliminary talks to sell investment banking unit Blackmount Capital Inc to Canaccord Capital Inc CCI.TO in exchange for a minority stake in Canaccord,

Ivanhoe Australia Ltd IVA.AX, 83 percent owned by Ivanhoe Mines Ltd’s IVN.TO, will develop three new copper mines in eastern Australia over the next five years, its chief executive said in an interview. [ID:nSYD255445].

In economic news, housing starts in Canada rose more than expected in August after cooling earlier in the summer.

In New York, stock futures pointed higher on oil’s decline and enthusiasm over the U.S. bailout plan. ($1=$1.1.06 Canadian) (Reporting by Jennifer Kwan; editing by Janet Guttsman)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below