Canadian Natural, Teck Cominco May Rise; CIBC May Decline

By John Kipphoff

Aug. 27 (Bloomberg) -- Canadian Natural Resources Ltd. and Teck Cominco Ltd. may gain, based on bids on the Toronto Stock Exchange, as higher oil and copper prices and increased U.S. durable-goods orders spur speculation that demand for commodities will remain strong.

Canadian Imperial Bank of Commerce may decline, bids indicated, after the country's third largest lender reported a 91 percent drop in profit, and missed an analyst's estimates, because of writedowns tied to the U.S. mortgage market,

The Standard & Poor's/TSX Composite Index added 0.1 percent to 13,299.07 yesterday in Toronto. Canada's equity benchmark, which derives three-quarters of its value from financial, materials and energy stocks, has fallen 12 percent below its June 18 peak as commodity prices slumped on concern lenders' credit losses will slow global growth and demand for resources.

Crude oil rose more than $2 a barrel in electronic trading in New York, on forecasts Tropical Storm Gustav will strengthen as it enters the Gulf of Mexico, home to 26 percent of U.S. production. Natural gas also gained. Copper, gold and soybeans prices advanced, in part because the U.S. dollar slipped, increasing the investment appeal of commodities.

Canadian Natural, whose Horizon oil-sands project is scheduled to begin production this year, may gain C$2.20 to C489.75, bids already submitted in Toronto showed. Suncor Energy Inc., the world's second-largest producer of oil from the tar sands, may advance 75 cents to C$59.90, bids indicated.

U.S. orders for goods meant to last several years unexpectedly increased in July, gaining 1.3 percent, the Commerce Department said. The increase indicates growing foreign demand is helping companies weather a slump in domestic consumer spending.

Teck Cominco, Canada's largest diversified mining company. May add C$1.04 to C$42.43, bids suggested. Barrick Gold Corp., the biggest bullion producer, may rise C$1 to C$37. Potash Corp. of Saskatchewan Inc., the largest maker of crop nutrients, may gain C$2.20 to C$189.91, based on bids.

Canadian Imperial Bank of Commerce may retreat 36 cents to C$56.70, bids showed. The country's fifth-largest bank said third-quarter profit fell to C$71 million ($68 million), or 11 cents a share, from C$835 million.

Canadian Imperial had C$885 million in pretax writedowns linked to the U.S. mortgage market, adding to C$6.66 billion in debt-related costs since the third quarter of 2007.

The bank earned C$1.65 a share before a number of one-time items, said National Bank Financial analyst Robert Sedran, missing his per-share estimate of C$1.72.

U.S. stock-index futures were little changed, erasing an earlier retreat, on the durable goods report.

To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.