CANADA STOCKS-TSX may open flat as commodity prices ebb

May 17 (BestGrowthStock) – Toronto’s main stock index could open
little changed on Monday as BP (BP.N: ) (BP.L: ) said it was making
some progress in its efforts to contain the Gulf of Mexico oil
spill while commodity prices slipped.

U.S. stock futures were higher as a fresh wave of mergers
and acquisitions helped dissipate worries over the impact of
heavy euro-zone debt loads on a global recovery. [.N]

European shares rose though sovereign debt worries were
still at the forefront of investors’ minds, with the euro
sinking to four-year lows.

Asian markets fell with Shanghai stocks down more than 5
percent, spurred largely by the Chinese government’s
stronger-than-expected steps to clamp down on property prices.

Here is some news that could affect stock prices:

OIL AT 3-MONTH LOW

U.S. oil prices fell below $70 a barrel to their lowest in
over three months on Monday but then rebounded as short-sellers
covered positions after a fall of almost 20 percent in just two
weeks. [O/R]

COPPER FALLS

Copper tumbled on Monday to its lowest since early May on a
sell-off triggered by renewed worries about Europe’s debt
crisis and sovereign default. [MET/L]

GOLD STEADY

Gold steadied but remained in sight of record highs as
concerns over Europe’s debt crisis and whether it will cripple
growth dominated markets, boosting the metal’s safe haven
appeal. [GOL/]

MAGMA TO BUY GGE’S STAKE IN HS ORKA

Magma Energy Corp (MXY.TO: ) said it agreed to purchase
Iceland’s Geysir Green Energy ehf’s (GGE) stake in HS Orka ehf
in a cash-and-stock deal valued more than $84.5 million, to
take near-total control of the geothermal company.
[ID:nSGE64G0GC]

TD BANK BUYS SOUTH FINANCIAL

Toronto-Dominion Bank (TD.TO: ) agreed to buy troubled U.S.
lender South Financial Group Inc (TSFG.O: ) for about $61 million
in cash or stock, less than half of the U.S. bank’s current
market value. [ID:nSGE64G0HT]

AETERNA TO ADVANCE TRIAL

Aeterna Zentaris (AEZ.TO: ) said on Monday that it would
complete a mid-stage European study for its AEZS-108 compound
later this year after the ovarian cancer treatment received a
key recommendation from European regulators. [ID:nN17197658]

MAGELLAN AEROSPACE RESULTS

Aerospace industry supplier Magellan Aerospace Corp’s
(MAL.TO: ) first-quarter results beat estimates despite a 61
percent fall in income, helped by strong demand in its Canadian
segment. [ID:nSGE64G0F6]

JAZZ AIR PILOTS VOTE

Jazz Air’s (JAZ_u.TO: ) 1,519 pilots will vote over the next
two weeks on giving their union a strike mandate after more
than a year of talks with the Canadian regional airline failed
to result in a new contract. [ID:nN14225749]

IVANHOE MINES’ LOSS WIDENS

Ivanhoe Mines (IVN.TO: ), which owns the Oyu Tolgoi
copper-gold deposit in Mongolia, said on Friday its
first-quarter net loss more than tripled, due largely to a loss
on the conversion of a convertible credit facility.
[ID:nN14211463]

CHURCHILL CORP TO BUY SEACLIFF

Canadian construction company Churchill Corp (CUQ.TO: ) said
it will buy Seacliff Construction Corp (SDC.TO: ) for about C$380
million in cash plus the assumption of about C$10 million of
debt. [ID:nSGE64D0LS]

GLG’S LOSS NARROWS

GLG Life Tech (GLG.TO: ) reported a smaller first-quarter
loss on Monday as volumes and revenue from its sales of
zero-calorie sweetener stevia extracts rose. [ID:nN17251236]

SHAWCOR TO SHUT UNIT

Shaw Pipe Protection, owned by the energy services company
ShawCor Ltd (SCLa.TO: ), notified United Steelworkers that
operations at the Barlow Trail facility in Calgary would end
effective July 30, the steel workers’ union said on Friday.
[ID:nSGE64D0LS]

ELECTROVAYA’S LOSS WIDENS

Electrovaya (EFL.TO: ), a zero-emission lithium ion battery
systems maker, reported a wider quarterly loss on Monday as a
59 percent rise in revenue failed to offset stock option
expenses and one-time charges incurred in the period.
[ID:nSGE64G0FB]

SOUTHGOBI LOSS WIDENS

Coal miner SouthGobi Energy Resources Ltd (SGQ.TO: )
(1878.HK: ) on Friday said its first-quarter loss widened as the
company lost millions in China Investment Corp (Read more about U.S. companies investment into China) [CIC.UL]
convertible debentures and derivatives. [IDnSGE64D0LO]

RESEARCH ROUNDUP

Following is a summary of research actions on Canadian
companies reported by Reuters. [RCH/CA]

Note: All values in RESEARCH ROUNDUP in Canadian currency,
unless otherwise stated.

* Finning (FTT.TO: ) price target cut to $21 from $22.50;
rating outperform at Raymond James

* H&R REIT (HR_u.TO: ) price target raised to $18.50 from
$18; rating outperform at Raymond James

* Magma Energy (MXY.TO: ) price target cut to $2 from $2.30;
rating outperform at Raymond James

* Northern Property REIT (NPR_u.TO: ) price target raised to
$26 from $24.50; rating outperform at Raymond James

* Paladin Energy (PDN.TO: ) rating cut to market perform from
outperform at Raymond James

* Petrobank Energy (PBG.TO: ) rating raised to outperform
from market perform; price target cut to $58 from $62

* Toromont Industries (TIH.TO: ) price target cut to $33 from
$34.50; rating strong buy at Raymond James

Stock Market Analysis

($1=$1.024 Canadian)

(Reporting by Bangalore newsroom, editing by Savio D’Souza
and Jeffrey Hodgson)

CANADA STOCKS-TSX may open flat as commodity prices ebb