November 19, 2009 / 1:03 PM / 9 years ago

CANADA STOCKS-TSX may open lower as commodities drop

TORONTO, Nov 19 (Reuters) - Toronto’s main stock market index could open lower on Thursday as weak gold and energy prices constrain the resource-laden market.

The falling commodity prices, coupled with a stronger U.S. dollar, will likely cap the Toronto Stock Exchange’s S&P/TSX composite index’s .GSPTSE gains at four sessions.

The TSX finished higher on Wednesday, closing at 11,652.69, following early buying that sent the index to a 13-month high. [nN18132612]

Investors will also take time to digest a slew of Canadian data including wholesale trade and leading indicators due out before the market open.

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


U.S. crude futures drifted lower to below $79 a barrel on Thursday as gains in the dollar weighed on prices and doubts about the pace of demand recovery in the United States dampened sentiment. [nNSP484907]


Gold prices retreated on Thursday from the record high above $1,150 an ounce reached the previous session, reacting to a rise in the dollar .DXY as investors took profits in higher-yielding currencies. [nLJ345071]


Canada’s economy has not yet recovered from recession so the government will follow through on the second phase of stimulus spending next year, Finance Minister Jim Flaherty said on Wednesday. [nN18127312]


About 62 percent of CF Industries’ (CF.N) shares have been tendered in favor of Agrium Inc’s AGU.TO hostile takeover bid, according to a source familiar with the matter, but a different vote later in the week is more likely to determine the outcome of the drawn-out takeover battle. [nN19158693]


Canada’s top life insurer Manulife Financial Corp (MFC.TO) (MFC.TO) said late on Wednesday it planned to issue C$2.5 billion ($2.4 billion) in equity and reach the fortress level of capital it has sought all year. [nN18483228]


Canada’s Agnico Eagle mining company has started work at its Pinos Altos gold and silver project in northern Mexico with an investment of $240 million, Mexico’s economy ministry said on Wednesday. [nN18508045]


Telus Corp (T.TO), Canada’s No. 2 phone company, sued Rogers Communications Inc (RCIb.TO) for allegedly misleading Canadians with advertising that claims Rogers’ wireless network is the fastest and most reliable in the country. [nN18132202]


TransCanada Corp (TRP.TO), the country’s largest pipeline company, said on Wednesday it expects to increase tolls sharply next year on its main natural gas system from Western Canada. [nN18106631]


Following is a summary of research actions on Canadian companies reported by Reuters on Thursday. [RCH/CA]

* Blackmont raises targets on Canadian banks

* Desjardins raises Metro Inc MRUa.TO price target to C$44 from C$42; Rating Buy

* Genuity cuts Manulife Financial (MFC.TO) price target to C$22 from C$23; Rating Hold ($1=$1.06 Canadian) (Reporting by Scott Anderson; Editing by Padraic Cassidy)

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