September 16, 2013 / 12:45 PM / in 4 years

CANADA STOCKS-TSX may open higher as Summers quits Fed chairman race

Sept 16 (Reuters) - Canada’s main stock index looked set to extend the previous session’s gains on Monday after Larry Summers’ surprise withdrawal of his candidacy from the race to become the next chairman of the U.S. Federal Reserve raised investors’ hopes of a relaxed taper of the central bank’s monetary easing policy.

TOP STORIES

* Former Treasury Secretary Lawrence Summers withdrew on Sunday from consideration to succeed Federal Reserve Chairman Ben Bernanke after fierce opposition from within the Democratic Party hurt his chances of being confirmed in Congress.

* Closer integration of the European financial system with a cross-border body to wind up or restructure failing banks will require a change of the EU treaty eventually, the Bundesbank’s vice president said.

* Packaging Corp of America said it would acquire smaller rival Boise Inc for about $1.28 billion to increase its container board capacity.

* Saudi billionaire Prince Alwaleed bin Talal says he will not sell any of his shares in microblogging site Twitter Inc when it goes public, and expects the firm’s IPO to hit the market later this year or in early 2014.

MARKET SNAPSHOT

* Canada stock futures traded up 0.33 percent

* U.S. stock futures , , were up around 0.95 percent and 1.09 percent

* European shares, were up

COMMODITY PRICE MOVES

* Thomson Reuters-Jefferies CRB Index : 290.0638; fell 0.52 percent

* Gold futures : $1,315.8; rose 0.57 percent

* US crude : $106.72; fell 1.38 percent

* Brent crude : $109.36; fell 2.09 percent

* LME 3-month copper : $7,075; rose 0.48 percent

CANADIAN STOCKS TO WATCH

* Aimia Inc : Aimia struck a deal with Toronto-Dominion Bank and Canadian Imperial Bank of Commerce under which TD will be the issuer of Aeroplan credit cards and acquire half of CIBC’s existing portfolio, with CIBC retaining the rest.

* Barrick Gold : The global gold miner could see its stock rebound if it attracts an activist shareholder who prompts management to quicken its pace in shedding assets, according to a story in the Barron‘s.

* BlackBerry Ltd : A handful of potential bidders, including private equity firms, are lining up to look at BlackBerry, but initial indications suggest that interest is tepid and buyers are eyeing parts of the smartphone maker rather than the whole company, several sources familiar with the situation said.

* Bombardier Inc : The company is targeting Monday for the first flight of its all-new CSeries jetliner, weather permitting, the planemaker said on Friday.

* Northern Dynasty : Mining group Anglo American has pulled out of the Pebble copper project in Alaska, one of the largest undeveloped copper deposits in the world but also an environmentally challenging operation that has been studied for almost three decades.

* TriOil Resources : Poland’s biggest refiner PKN Orlen said it agreed to buy upstream company TriOil Resources for 563 million zlotys, in a deal to help turn it into an oil producer.

ANALYSTS’ RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

* Halogen Software Inc : National Bank Financial starts with outperform and target price C$18, says the company’s existing customer base provides revenue visibility and upside.

* Long Run Exploration Ltd : Canaccord Genuity raises price target to C$7 from C$6.50 after the company announced the acquisition of 1,500 boe/d of production in Alberta.

* Reitmans Canada Ltd : CIBC cuts price target to C$8 from C$10 after the company reported weak second-quarter results.

* Sherritt International Corporation : RBC cuts to sector perform from outperform; target price to C$5 from C$6 as a result of continued weakness in the nickel market.

ON THE CALENDAR

* Major Canadian economic data includes manufacturing sales

* Major U.S. events and data includes industrial output and capital utilisation

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