TORONTO, Jan 15 (Reuters) - Toronto’s key stock index could rebound to open higher on Thursday as a rise in the price of oil, a key Canadian export, may lend support to the resource-heavy TSX following a steep selloff the previous session.
Toronto’s energy sector accounts for about 22 percent of the overall index, so its moves, which are often influenced by oil prices, tend to set the tone for the broader index.
But the weighty financial sector, home to Canadian banks and insurers, could weigh on the index given concerns out of the United States that banks there could post additional losses stemming from the credit crisis.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE is coming off a sharply lower close as jitters about upcoming corporate earnings and the state of the global economy weighed on investor sentiment.
Here is some of the news that may affect the market:
Oil edged up nearer to $38 a barrel on Thursday after an early $1 fall, but more glum figures from world markets put a cap on further gains. [ID:nLF147418]
One of the largest shareholders of Air Canada’s ACa.TO parent, ACE Aviation Holdings Inc ACEa.TO, said on Wednesday it will oppose ACE’s planned windup, saying it is not in the best interest of investors. [ID:nN14483382]
CRYSTALLEX, GOLD RESERVE HAVEN‘T HEARD FROM CHAVEZ
Crystallex International KRY.TO and Gold Reserve GRZ.TO both said on Wednesday they have not heard from the Venezuelan government regarding statements by President Hugo Chavez that he will award their key gold concessions in the country to a third party. [ID:nN14484558]
TRANSCANADA SAYS DELAYS WON‘T HAMPER U.S. PIPELINE
Delays to projects planned by Canadian oil producers and U.S. refiners will not hamper TransCanada Corp’s TRP.TO $12 billion Keystone oil pipeline to the United States, as most of it is already booked with committed crude volumes, an executive said on Wednesday. [ID:nN14480753]
Following is a summary of research on Canadian companies. For more, please see [RCH/CA]
* Jennings Capital cuts Petrolifera Petroleum PDP.TO price target 25 percent to C$3.75 with a “buy” rating.
* Raymond James cuts Trican Well Service TCW.TO price target 10 percent to C$9 with “market perform” rating.
There is no key domestic economic data due out ahead of the Bank of Canada’s next interest rate announcement scheduled for Jan. 20. The central bank cut its key rate in December to its lowest in 50 years and is widely expected to cut it again next week. ($1=$1.25 Canadian) (Reporting by Frank Pingue; Editing by James Dalgleish)