TORONTO, Nov 20 (Reuters) - The Toronto Stock Exchange’s main index .GSPTSE is poised to fall on Thursday, with the declining price of oil setting the direction amid a backdrop of persistent worries over the state of the world economy.
The index could extend losses from the previous session when it sank 4 percent to hit its lowest level in four years in a broad selloff led by key resource and financials issues on gloomy news from the banking sector.
Here is some of the news that may affect the market.
Teck Cominco TCKb.TO announced first steps in its debt reduction plan, which includes suspending its dividend. The diversified miner also cut budgeted capital expenditures, sold its stake in the Lobo-Marte gold property, and said it will reduce zinc production at the Trail complex. The measures announced amount to C$2.4 billion. [ID:nWNAB5804]
* Inmet IMN.TO to acquire remainder of Petaquilla project [ID:nWNAB5819]
* Kinross (K.TO) to acquire 100 percent interest in Lobo-Marte [ID:nWNAB5806]
Oil fell below $52 a barrel, deepening losses over the previous four sessions as battered financial markets reflected ever lower confidence in the world economy and evidence mounted of falling fuel demand. [ID:nSP424057]
The Alberta government softened its shift to higher oil and gas royalties in hopes of stemming a downturn in drilling and loss of jobs in Canada’s biggest energy-producing province. Alberta, its top industry facing skidding oil prices and a global credit crisis, said it will offer companies lower royalties for new oil and gas wells over the next five years. [ID:nN19363515]
Chrysler Canada Inc [CBS.UL] has asked the Canadian and Ontario governments for C$1 billion in financial assistance to help it through the global economic crisis, making it the first Canadian automaker to specify how much it is seeking, the Globe and Mail reported. [ID:nN20389715]
See also: Prospects for U.S. auto bailout dims as Senate races clock [ID:nN19320198]
Canada’s minority Conservative government, reelected on Oct. 14, put its new agenda forward in Parliament on Wednesday, with its focus on the troubled economy. [ID:nN19363884]
Citigroup Inc shares rose in premarket trading Thursday as longtime shareholder Saudi Prince Alwaleed bin Talal announced plans to increase his stake in the bank to 5 percent from less than 4 percent. [ID:nWEN0847]
Following is a selection of research actions on Canadian companies reported by Reuters on Thursday. For more companies, please see [RCH/CA]
* RBC cuts Mercator Minerals ML.TO to “underperform” from “outperform”
* TD Newcrest raises Metro Inc MRUa.TO price target to C$38 from C$33
* Dundee raises Agnico-Eagle (AEM.TO) price target to C$72 from C$71
$1=$1.26 Canadian Reporting by Ka Yan Ng, Editing by Chizu Nomiyama