Bay Street Could Follow Crude Oil Lower - Canadian Commentary

(RTTNews) - Bay Street stocks could see some early weakness on Wednesday as gold and oil prices pared some of their sharp gains from earlier in the week. Toronto’s main index closed above 10,000 points on Tuesday for the first time in two weeks.

Traders mulled the results of Tuesday’s U.S. elections that saw voters overwhelmingly select Democrat Barack Obama as the nation’s 44th president. Anticipated interest rate cuts in the Eurozone and UK on Thursday also weighed on traders’ minds.

Energy stocks may cool off after crude oil pared some of yesterday’s rally in overnight trading. Light sweet crude for December delivery moved to $68.63, down $1.90 for the session.

Enbridge Inc. (ENB.TO) may rise on a favorable third-quarter earnings report. The pipeline operator’s adjusted earnings for the quarter were C$85.8 million or C$0.24 per share, compared to C$79.0 million, or C$0.22 per share in the prior year.

Meanwhile, Pengrowth Energy Trust (PGH) will also be in focus after it reported a third-quarter net income rise to C$422.39 million or C$1.39 per trust unit from C$161.49 million or C$0.66 per trust unit last year.

Also, Pristine Power (PPX.TO) reported third-quarter net loss of C$2.32 million, compared to net loss of C$1.01 million last year. Loss per share was C$0.07, narrower than C$0.09 in the previous year.

Elsewhere on the corporate front on Wednesday, Agrium (AGU.TO) could gain after the company revealed net earnings for the third quarter of US$367 million, or US$2.31 per share, which is up sharply from the US$51 million, or US$0.38 per share a year-ago.

Kingsway Financial Services (KFS.TO) may see weakness after the company reported a third-quarter net loss of US$17.4 million or US$0.32 per share, compared to net income of US$23.6 million or US$0.42 per share in the same quarter last year.

Gold prices moved slightly lower on the Comex, losing $3.90 an ounce to $753.40. Gold stocks led Tuesday’s rise on Bay Street, gaining 11.5%. The precious metal closed at $757.50 an ounce, up $30.50 on the Comex.

The S&P/TSX Composite Index gained 395.32 points or 4.07% on Tuesday to close at 10,116.58 points, its best close since Oct. 21.

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Posted in Categories: Canada, Eurozone, Releases, Stocks, UK, USA.

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