TORONTO, Oct 28 (Reuters) - The Toronto Stock Exchange’s main index .GSPTSE may rise at the open on Tuesday as commodity prices recovered and profit at Rogers Communications (RCIb.TO) rose sharply.
But gains may be tempered by the financials sector as brokerage Dundee Securities downgraded the country’s biggest banks as their fiscal year-ends draw to a close.
Some bargain hunters may also emerge after Monday’s late-session drop. The index closed on Monday below 9,000 for first time since December 2004, as it lost more than 300 points in the last half hour of trade. It finished down 8.14 percent at 8,537.34. The benchmark index is down 27 percent so far this month.
Here is some of the news that could affect the market.
The country’s biggest wireless service provider said quarterly profit jumped 84 percent, beating analysts’ expectations, helped by sales of Apple’s iPhone. Rogers also lowered its 2008 outlook for its wireless unit as the costs to activate new subscribers mounted. [ID:nN27347751]
Tracking a recovery in European and Asian stock markets, oil rose above $64 a barrel. Market players were also watching closely for evidence OPEC was implementing its decision last week to cut output, as well as Wednesday’s data on U.S. fuel stocks. [ID:nSP356619]
Gold climbed more than 3 percent in Europe as the dollar softened against the euro and a recovery in equities curbed selling of bullion to over losses on other markets. Platinum and palladium were also firmer. [ID:nLS113101]
Dundee Securities downgraded eight Canadian banks, saying earnings estimates and valuations for the banks will remain under pressure and will decline even further. Half the banks have a sell rating, including Bank of Nova Scotia (BNS.TO) and Royal Bank of Canada (RY.TO). The other four have neutral ratings, including Toronto-Dominion Bank (TD.TO) and National Bank of Canada (NA.TO). [ID:nWNAB2961]
Canadian Pacific Railway (CP.TO) posted a lower third-quarter profit, citing foreign exchange impacts on long-term debt and charges associated with the revaluation of an investment in asset-backed commercial paper for the dip. [ID:nN28373363]
Pharmaceutical company QLT QLT.TO QLTI.O reported a jump in third-quarter profit, primarily because of gains from asset divestments. It also said it expected sales of Visudyne, aimed at fighting macular degeneration, for the year will be at the low end of its forecast range. [ID:nN27316515]
Brokerage Genuity Capital Markets cut the price target on Research in Motion RIM.TO to $100 from $140, while UBS cut Shoppers Drug Mart SC.TO. Versant Partners cut WestJet Airlines (WJA.TO) to C$11.50 from C$14.50 and reduced the carrier to hold from buy on increased market challenges.
For a summary of rating and price target changes on these and other Canadian companies, double click [RCH/CA] ($1=$1.29 Canadian) (Reporting by Ka Yan Ng; Editing by James Dalgleish)