February 27, 2009 / 1:32 PM / 10 years ago

CANADA STOCKS-TSX may slip as oil retreats, eye on banks

TORONTO, Feb 27 (Reuters) - Toronto’s main stock index may open lower on Friday after a three-session rally as the price of oil fell and U.S. banking news may add pressure.

While oil slipped below $44 a barrel, it was poised to make its first monthly gain since June.

Meanwhile, the U.S. Treasury Department said it will convert some of the preferred stock it holds in embattled lender Citigroup into common stock, a step that will give it a significant stake in the bank. [ID:nN27372191]

The S&P/TSX composite index .GSPTSE climbed on Thursday for a third straight session in a rally sparked by better than expected bank earnings and stronger oil prices.

Below is some of the news that may affect the market.


Oil fell back from its three-day bull run, paring around 3 percent in early trade, but otherwise remaining on course to end the month up 5 percent from January, its first monthly gain since June. [ID:nSIN461583]

Gold firmed in Europe as lingering risk aversion amid fresh losses on the equity markets lifted the metal from the two-week lows it hit earlier in the session. [ID:nLR645000]


HudBay Minerals (HBM.TO), which recently saw a proposed merger with Lundin Mining cancelled, urged its shareholders to vote against a slate of directors nominated by top shareholder SRM. It also said its lenders have refused to renew its credit facility. [ID:nWNAB8075] [ID:nWNAB8068]


Following is a summary of Canadian companies that reported quarterly results since Thursday’s market close:

* Cascades (CAS.TO) posts better-than-expected Q4 profit [ID:nBNG457815]

* GMP Capital GMP_u.TO posts loss, to convert to div-paying company [ID:nBNG160345]

* Onex OCX.TO loss soars, sees “dislocated” credit markets [ID:nN26374872]

* Macdonald Dettwiler & Associates MDA.TO profit drops as restructuring costs bite [ID:nN26285510]

* Mosaid MSD.TO Q3 beats consensus, sees Q4 below Street [ID:nBNG387077]


A deadline is nearing for negotiations between Canwest Global Communications CGS.TO and the media giant’s lenders to reinstate a credit facility that would help the company stave off a potential bankruptcy protection filing. A spokesman had no comment on Thursday regarding the timing of any announcement. [ID:nN26169100]


Canada’s economy suffered its biggest quarterly contraction since 1991 in the fourth quarter of last year, a report is expected to show on Monday, lengthening a string of bad economic news. Markets forecast GDP fell 3.6 pct annualized.[ID:nN26546382]


Following is a summary of research actions on Canadian banks reported by Reuters. The research comes the day after three of Canada’s big banks reported quarterly results that were hit hard by market-related charges, but underlying results excluding one-time items beat street expectations. [ID:nN26542233]

* UBS cuts CIBC (CM.TO) price target; rating buy

* UBS, Dundee cuts Royal Bank of Canada (RY.TO) price target

* Genuity, Credit Suisse raises National Bank of Canada (NA.TO) price target

* Dundee cuts National Bank of Canada to neutral from buy

For other research actions on Canadian companies reported by Reuters, please see [RCH/CA] (Reporting by Ka Yan Ng)

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