October 23, 2008 / 12:52 PM / 9 years ago

CANADA STOCKS-Toronto index seen rising as oil in focus

TORONTO, Oct 23 (Reuters) - The Toronto Stock Exchange’s main index .GSPTSE may rise on Thursday as energy issues are likely to benefit from recovering oil prices and better-than-expected quarterly results from some big oil explorers.

But the focus may turn from corporate results to company outlook in any sector as recession worries hover in the background.

The Bank of Canada will offer its economic views in its Monetary Policy Report, due at 10:30 a.m. (1430 GMT).

The TSE index closed nearly 6 percent lower on Wednesday as resource issues sank along with commodity prices on concerns that a global economic slowdown will slash demand.

Here is some of the news that could affect the market.

OIL PATCH RESULTS

Quarterly results beat expectations at oil explorers Petro-Canada PCA.TO [ID:nBNG372282] and EnCana ECA.TO [ID:nBNG274906]. Profit rose sharply in a period where oil prices climbed to records before falling in the financial crisis. Precision Drilling PD_u.TO, an oil and gas drilling contractor, said its profit rose 13 percent, helped by U.S. expansion. [ID:nN22370234]

SUNCOR CUTS 2009 CAPEX SPENDING,

Oil sands producer Suncor SU.TO said the board approved a C$6-billion capital spending plan for 2009, reducing targeted spending by more than a third following a review of current market conditions. About 60 percent of that amount is earmarked for Suncor’s Voyageur oil sands project. [ID:nN23427017]

GOLD RECOVERS, OIL ABOVE $68,

Gold recovered from a 13-month low hit overnight as an uptick in oil prices counterbalanced the stronger dollar, which is denting the precious metal’s appeal as an alternative investment. Crude bounced back after a 7.5 percent fall on Wednesday as investors focused on expected supply cuts from OPEC [ID:nLN562929]

TECK COMINCO PROFIT FALLS

Teck Cominco TCKb.TO reported a worse-than-expected 13 percent fall in quarterly profit, hit by a decline in commodity prices. The miner also raised its outlook for 2008 capital spending. [ID:nN21307107]

POTASH CORP PROFIT RISES FIVE-FOLD

Potash Corp of Saskatchewan POT.TO, the world’s largest fertilizer company, said quarterly profit increased five-fold. It said it expects 2008 earnings to be at the lower end of its prior outlook. [ID:nBNG21493]

CANADA STRENGTHENS CREDIT MARKETS

Canada will insure borrowing by the nation’s banks to ease lending and keep them on equal footing with foreign competitors, Finance Minister Jim Flaherty announced on Thursday. The temporary program will be offered to lenders on commercial terms so there is no expected fiscal cost. [ID:nTOR003681]

RAYMOND JAMES CUTS TARGETS ON SOME MINERS

Brokerage Raymond James cut targets for several Canadian miners, including Taseko Mines TKO.TO and Anvil Mining AVM.TO.

For a summary of other research actions on Canadian companies, please double click on [RCH/CA] ($1=$1.26 Canadian) (Reporting by Ka Yan Ng; Editing by James Dalgleish)

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