Canadian Natural, Goldcorp, TD Bank May Gain on Oil, Gold

By John Kipphoff

Oct. 30 (Bloomberg) -- Canadian Natural Resources Ltd. and Goldcorp Inc. may rise, based on bids on the Toronto Stock Exchange, after crude oil and bullion prices increased and the U.S. economy shrank less than expected in the third quarter.

Toronto-Dominion Bank and Manulife Financial Corp. may gain, joining in a global equity rally as stocks advanced worldwide for a third day after central banks cut borrowing costs and the U.S. Federal Reserve extended $120 billion in credit lines to emerging market economies including Brazil.

The Standard & Poor's/TSX Composite Index rose 3.8 percent to 9,501.56 yesterday in Toronto, capping its biggest two-day rally in 32 years. A third day of gains would represent the main Canadian benchmark's longest winning streak in seven weeks.

The S&P/TSX, which derives three-quarters of its value from commodity and financial shares, has still dropped 19 percent in October, poised for its worst monthly decline in a decade, on speculation that the global credit crisis and equity rout will cause more losses at finance companies and that a recession will curb demand for Canadian commodity exports.

Canadian Natural, the nation's fourth-largest energy company, may climb C$1.75 to C$60, bids already submitted in Toronto indicated. Larger rival EnCana Corp. may add C$1.10 to C$60.30.

Goldcorp, the second-biggest bullion mining company by market value, may rise 50 cents to C$24, bids showed. Potash Corp. of Saskatchewan Inc., the largest maker of crop nutrients by stock market value, may climb C$5.12 to C$01.80.

Crude oil for December delivery climbed as much as 4.6 percent to $70.60 a barrel on the New York Mercantile Exchange, on speculation that yesterday's interest rate cuts in the U.S. and China will spur a global economic recovery and increase demand for fuels. It traded at $68.05 as of 9:16 a.m. New York time.

Gold futures rose for a second day in New York as the U.S. dollar declined, boosting the appeal of the precious metal as an alternative investment.

The economy in the U.S., Canada's biggest trading partner, contracted less than forecast in the third quarter, shrinking at a 0.3 percent annual pace. Economists polled by Bloomberg had forecast a 0.5 percent contraction in gross domestic product.

Toronto-Dominion, Canada's second-biggest lender, may advance 88 cents to C$55.36, bids suggested. Manulife, the nation's largest insurance company, may climb for a third- straight day, adding C$1.40 to C$26.70.

The Fed lowered borrowing costs and agreed to pump $120 billion into Brazil, Mexico, South Korea and Singapore to help unlock lending in emerging markets.

The London interbank offered rate, or Libor, for three- month loans in dollars slid 23 basis points to 3.19 percent today, its 14th consecutive drop, according to the British Bankers' Association. The overnight dollar rate tumbled 41 basis points to 0.73 percent, the lowest level since January 2001.

U.S. stock-index futures extended gains on the better-than- expected GDP report.

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