March 24, 2009 / 12:33 PM / in 9 years

CANADA STOCKS-TSX may retreat after surge; oil, metals weak

TORONTO, March 24 (Reuters) - Toronto’s main stock index could open lower on Tuesday after surging more than 5 percent in the previous session and as weakness in commodities pressure the resource-laden market.

World stocks .MIWDOOOOOPUS continued to climb on Tuesday on optimism lingering from the previous session on a U.S. plan to purge toxic assets from the banks’ balance sheets. [ID:nLO289300]. However, U.S. stock index futures pointed to a lower open. [ID:nLO103515]

On Monday, the Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE rose 452.16 points, or 5.32 percent, to close at 8,958.51. This was its highest close in six weeks as a massive takeover of Petro-Canada PCA.TO and a U.S. plan to rid banks of toxic assets helped boost sentiment.

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

HUDBAY MINERALS INC (HBM.TO)

HudBay Minerals Inc said on Monday its board of directors resigned and will be replaced by a slate put forward by dissident shareholder SRM Global Master Fund. [ID:nN23299874]

TEMBEC INC (TMB.TO)

Canadian forest products company Tembec announced a temporary curtailment of operations in the Kapuskasing region, which will affect about 510 employees at its sawmill, newsprint and forestry operations. [ID:nN24326319]

SUNCOR ENERGY (SU.TO), PETRO-CANADA PCA.TO

Canadian Finance Minister Jim Flaherty said Suncor Energy’s proposed takeover of Petro-Canada is an important deal for Canada and for the oil patch. [ID:nN24323348]

Suncor said on Monday it has agreed to acquire Petro-Canada for C$18.4 billion to create Canada’s largest oil company. [ID:nN22497404]

FIRST QUANTUM MINERALS (FM.TO)

First Quantum Minerals (FM.TO) said on Monday it will sell at least C$300 million in stock, and use the funds to advance its capital projects. [ID:nN23515941]

CANADIAN RESEARCH

Raymond James raises Petro-Canada PCA.TO target price to C$38 from C$34, keeps market perform rating, while Desjardins cuts First Quantum to C$37.50 from C$38.80 and reduces rating to hold from buy. For more research, see: [CA-RCH]

FINANCIALS SECTOR

The heavily-weighted financials sector may be in focus after Credit Suisse CSGN.VX said it has had a strong start to 2009 and would ask shareholders for the option to raise equity capital for acquisitions. [ID:nLN484738]

Also, Deutsche Bank’s (DBKGn.DE) chief executive said on Tuesday the bank will return to profit this year if the global economy, financial markets and the regulatory environment develop as expected. [ID:nLO206203]

AUTO INDUSTRY

General Motors of Canada (GM.N) will save nearly C$1 billion on future labor costs as a result of union concessions it won earlier in March, it said in a letter obtained by Reuters on Monday. [ID:nN23308909]

CENTERRA GOLD INC (CG.TO)

Centerra Gold Inc is looking for a joint-venture partner in China, a senior company official said on Tuesday. “We are looking for a partner in China which will help us to do some exploration work, some production work and maybe to run a property,” Ian Atkinson, vice president exploration, told Reuters on the sidelines of the 5th Annual Asia Mining Congress. [ID:nSP18477]

VERENEX ENERGY INC VNX.TO

Libya’s purchase of Canada’s Verenex Energy Inc will be concluded as soon as possible, the head of Libya’s National Oil Company said on Tuesday. [ID:nLO459881]

OIL SAGS

Oil edged down towards $53 on Tuesday, as investors took profits after a 3 percent rise in the previous session that was supported by a surge on global stock markets on a new U.S. banking rescue plan. [ID:nSP459944]

GOLD, BASE METALS

Gold slipped on Tuesday pressured by a rising dollar and broad strength in equities, but analysts said inflationary concerns would underpin bullion’s safe-haven appeal. [ID:nLO262568] Base metals were mostly lower. [ID:nLO660607] ($1=$1.23 Canadian) (Reporting by Jennifer Kwan, Editing by Chizu Nomiyama)

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