News from Reuters

TSX set to fall as sour mood persists

18/11/08

TORONTO (Reuters) - The Toronto Stock Exchange's main index is expected to fall on Tuesday as the price of oil drifted lower and as the state of the world economy continues to weigh on sentiment.

With little news on the domestic front, Toronto stocks may look to the price of oil and rescue plans in the United States for market direction.

The Toronto index sank nearly 3 percent on Monday as financial services and commodity-related issues were pulled down by gloomy sentiment from a faltering world economy.

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

OIL RETREATS Toward $54

The price of oil fell toward $54 a barrel, setting a new near 22-month low as the gloomy outlook for the world economy helped extinguish a brief rally.

TRANSCANADA TO ISSUE C$1.16 BLN OF STOCK

TransCanada Corp plans to issue up to C$1.16 billion of stock to fund major projects like the Keystone oil pipeline, marking its second billion-dollar offering in half a year. The country's biggest pipeline operator said it plans to issue 30.5 million common shares, at C$33 each, against a backdrop of weak financial markets.

U.S. AUTO AID PLAN

Top executives of General Motors , Ford and Chrysler and the president of the United Auto Workers union were to testify in Congress on a rescue plan. U.S. Senate Democrats took the first step toward bailing out the crippled auto industry with a proposed $25-billion loan program. Ford said it would sell its 20-percent stake in Mazda to raise cash.

BERNANKE, PAULSON APPEARANCES

U.S. Federal Reserve Chairman Ben Bernanke and U.S. Treasury Secretary Henry Paulson are due to give an update on the status of the government's $700-billion financial sector aid program to the House Financial Services Committee on Tuesday. They fielded questions from leading Democrats on Monday.

ENTERRA ENERGY TRUST SETS CAPEX BUDGET

Enterra Energy Trust has set its capital expenditure budget for 2009 at about C$60 million. The budget will be focused toward maintaining or slightly growing daily output levels.

CANWEL IN DISTRIBUTION DEAL WITH OWENS CORNING

CanWel Building Materials Income Fund said it has entered into an exclusive agreement with Owens Corning Canada to provide national warehouse and distribution services for fiberglass insulation products.

RESEARCH ROUNDUP: GEORGE WESTON, NOVA CHEMICALS

Following is a selection of research actions on Canadian companies reported by Reuters on Tuesday. For more companies, please see .

* RBC cuts George Weston to "sector perform" from "outperform"

* RBC cuts Nova Chemicals to "sector perform" from "outperform"

* Dundee cuts Cardiome Pharma price target to C$10 from C$12.50

* Genuity cuts Ivanhoe Mines price target to C$1-.50 from C$13

(Reporting by Ka Yan Ng; Editing by James Dalgleish)

© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.