TORONTO, Jan 21 (Reuters) - Toronto’s key stock index could get a lift at the open on Wednesday as rising prices for key Canadian exports like oil and gold may convince investors to return to the resource heavy index after a 3.8 percent skid Tuesday.
Canada is a key exporter of commodities like oil and gold and with the energy and materials sectors accounting for about 40 percent of the overall index, the Toronto index is often dictated by moves in their prices.
But nagging concerns about the global recession and the possible impact on the demand for Canadian exports could well cap any gains despite rising prices.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE is fresh off a 336.55 point skid in Tuesday’s session that was driven by the gloomy global economic outlook.
Here is some of the news that may affect the index:
Blackberry maker Research in Motion Ltd RIM.TO withdrew its C$66 million hostile takeover offer on Tuesday for Certicom Corp (CIC.TO), saying a Canadian court ruling had left it no option. [ID:nN20412673]
SUSPENDED PETRO-CANADA OIL SANDS PLANT APPROVED
Alberta’s energy regulator said on Tuesday it approved Petro-Canada’s PCA.TO plans for an oil sands processing plant near Edmonton that the company has already deferred due to low oil prices and the financial meltdown. [ID:nN20513074]
Oil edged above $41 a barrel on Wednesday, as further evidence emerged of a deepening global slowdown that is crushing demand for fuel. [ID:nSP402296]
GOLD RISES, AIDED BY SAFE-HAVEN BUYING
Gold recovered early losses to firm in Europe on Wednesday, boosted by interest in bullion as a safe haven from risk, but remained off the previous session’s 11-day high as the euro gave up gains versus the dollar. [ID:nLL269838]
Following is a summary of research on Canadian companies. For more, please see [RCH/CA]
* Raymond James upgrades Inmet Mining IMN.TO rating to “strong buy” from “outperform”
* Raymond James downgrades First Uranium FIU.TO rating to “outperform” from “strong buy”
* Raymond James cuts Pan American Silver PAA.TO price target 20 percent to C$32.
* Raymond James cuts Frontera Copper FCC.TO rating to “market perform” from “outperform”
Canadian wholesale trade data for November is due out at 8:30 a.m. (1330 GMT). The report is expected to show domestic wholesale trade fell 1.5 percent in the month after a 1.8 percent drop in the prior month.
$1=$1.26 Canadian Reporting by Frank Pingue; Editing by Theodore d'Afflisio