April 24, 2009 / 12:35 PM / in 9 years

CANADA STOCKS-TSX could start higher on commodity rally

TORONTO, April 24 (Reuters) - Toronto’s main stock index could open higher on Friday as the resource-heavy index may draw support from a rise in oil and gold prices while the latest batch of U.S. corporate earnings could lend further support.

With no key Canadian corporate earnings due out on Friday, investors may look for direction from U.S. equities, which look set to open higher after automaker Ford Motor Co (F.N) reported better-than-expected results. [ID:nN24400235]

The S&P/TSX composite index .GSPTSE closed at 9,409.50 in Thursday’s session given a 1.4 percent gain. But it remains down on the week and needs to close about 29 points higher on Friday to finish higher for the seventh straight week.

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

OIL RISES ABOVE $50, EQUITIES, DOLLAR SUPPORT

Oil rose above $50 on Friday, supported by firmer stock markets and a weaker dollar, but the gains were capped by historically high inventories. [ID:nSP416073]

CHINA BUYING BOOSTS GOLD TO 3-WEEK HIGH

Gold surged to a three-week high on Friday, boosted by the prospect of further purchases by China, after the country revealed it had been buying the precious metal since 2003. [ID:nLO625427]

STIMULUS MEASURES STARTING TO WORK -BANK OF CANADA

Canadian government and central bank attempts to stimulate the sagging Canadian economy are starting to take effect and will reach full force sometime next year, Bank of Canada Governor Mark Carney said on Friday. [ID:nTOD004065]

GILDAN EXPECTS ASIA TO MAKE UP 45 PCT OF GLOBAL SALES

T-shirt maker Gildan Activewear Inc (GIL.TO) expects Asian markets to account for 45 percent of global sales within three years versus about 5 percent now thanks to solid demand from China, an executive said on Friday. [ID:nTP307257]

CANADIAN RESEARCH: CP RAIL, CHARIOT RESOURCES

Following is a list of research on Canadian-listed companies. For more, please see [RCH/CA].

* UBS cuts Canadian Pacific Railway (CP.TO) price target 5.7 percent to C$50 from C$53 with “buy” rating.

* Raymond James cuts Chariot Resources CHD.TO rating to “market perform” from “strong buy” and lowers target price 40 percent to 30 Canadian cents.

* Raymond James raises Paladin Energy PDN.TO price target 10 percent to C$4.30 from C$3.90 and maintains “outperform” rating.

$1=$1.22 Canadian Reporting by Frank Pingue; Editing by Theodore d'Afflisio

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