September 11, 2009 / 12:26 PM / in 8 years

CANADA STOCKS-TSX seen up on China, gold

TORONTO, Sept 11 (Reuters) - Toronto’s main stock index is likely to open higher on Friday as higher gold boosts mining and raw material firms and shares follow world markets higher on economic recovery hopes.

A weakening dollar and robust Chinese economic data sharpened investor appetite for risk on Friday, sending world stocks to fresh 11-month highs.

U.S. stock index futures pointed to a firmer open. [MKTS/GLOB] [.N]

On Thursday, the S&P/TSX composite index .GSPTSE ended the session with a gain of 154.83 points, or 1.41 percent, at 11,155.00, as a rally in commodity prices boosted the resource-heavy index while the Bank of Canada’s confidence in the economy added support.

Here is some news that could affect the market:

MAGNA INTERNATIONAL MGa.TO

Workers at Opel, German politicians and customers of Canada’s Magna International expressed concern on Friday about whether General Motors’ [GM.UL] decision to sell a majority of Opel to Magna and Russia’s Sberbank SBER03.MM will turn out to be a favourable deal. [ID:nLB518046]

ENCANA CORP ECA.TO,

EnCana Corp, Canada’s second-largest energy company, put a plan to split into two back on track Thursday, less than a year after shelving it, saying it believed financial and commodity markets had recovered to where the move looked attractive again. [ID:nN10405416]

EMPIRE CO LTD EMPa.TO

Empire Co Ltd reported a higher quarterly profit on Friday helped by gains at its core Sobeys supermarket chain, Canada’s No. 2 grocery chain. [ID:nWNAB8680]

CANADA BUDGET DEFICIT

The Canadian government pushed back its projected return to balanced budgets by at least two years on Thursday and pledged to stay the course in delivering economic stimulus and not raising taxes. [ID:nN10410511]

BARRICK GOLD CORP ABX.TO

Barrick Gold Corp said on Thursday that proceeds from its pending equity offering will total around $4 billion, making the stock sale the biggest in Canadian history, according to Thomson Reuters data. [ID:nN10419364]

CANWEST GLOBAL COMMUNICATIONS CGS.TO

Canwest Global Communications said on Thursday that its Canwest Limited Partnership unit has reached an agreement with senior secured lenders while discussions about a potential recapitalization deal continue. [ID:nN10417051]

WESTJET AIRLINES WJA.TO

WestJet Airlines may be readying the ground for its first acquisition with a surprise C$172.5 million share offering, analysts said on Thursday. [ID:nN10395430]

COMPTON PETROLEUM CORP CMT.TO

Compton Petroleum Corp filed plans with Canadian and U.S. securities regulators on Thursday for a $139.1 million equity offering as it looks to recapitalize its business and cut debt. [ID:nN10416668]

HARRY WINSTON DIAMOND HW.TO

Harry Winston Diamond HW.TO recorded a loss in the second quarter, as plunging demand cut the diamond miner and retailer’s revenues nearly in half, the Canadian company said on Thursday. [ID:nN10263993]

OIL EASES

U.S. crude oil slipped below $72 a barrel on Friday, snapping a three-day winning streak as investors questioned whether the pace of demand recovery justified current prices. [O/R]

GOLD, BASE METALS

Gold prices rose back towards $1,000 an ounce in Europe on Friday as the dollar index .DXY tumbled to one-year lows, fuelling interest in gold as an alternative asset. [GOL/]

Copper was steady after an uncertain start on Friday, vacillating between investors who fret prices have gone too high despite weak demand fundamentals, and a weak dollar which gives a boost to metal prices.[MET/L]

CANADA RESEARCH

RBC raises Lululemon Athletica LLL.TO price target to $26 from $17; rating outperform.

Genuity raises Transat AT TRZb.TO to buy from hold.

Canaccord Adams raises Fronteer Development Group FRG.TO raises price target to C$5.35 from C$4.95; rating hold.

$1=$1.08 Canadian Reporting by Jennifer Kwan; Editing by Andrew Hay

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