Toronto-Dominion Bank May Decline; Barrick Gold May Rise

By John Kipphoff

Oct. 8 (Bloomberg) -- Toronto-Dominion Bank may fall, based on bids on the Toronto Stock Exchange, after interest-rate cuts from North American and European central banks failed to allay investor concern that a recession is coming.

European stocks indexes and U.S. stock futures dropped even after the U.S. Federal Reserve, the Bank of Canada and the European Central Bank among others announced a coordinated half percentage-point cut in borrowing costs aimed at unlocking frozen global credit markets. British banks including Royal Bank of Scotland Group Plc will get a 50 billion-pound ($87 billion) government lifeline and emergency loans from the Bank of England.

Barrick Gold Corp. may rise, pacing an advance among bullion miners, after prices of the precious metal advanced for a third day as financial turmoil spurred investors to seek a haven. Overall, commodities fell today, dragged down by lower prices for copper and crude oil.

The Standard & Poor's/TSX Composite Index fell 3.9 percent to 9,829.55 yesterday in Toronto, the lowest since June 2005. Canada's main equity benchmark has fallen 35 percent from its June 18 record after the contraction in global credit caused by U.S. and European bank failures dragged down commodity prices and the raw-material and energy shares that make up more than two-fifths of the S&P/TSX value.

Toronto-Dominion, Canada's second-largest lender by assets, may fall C$1.04 to C$54.98, bids already submitted in Toronto indicated. Royal Bank of Canada, the biggest, may decline 63 cents to C$44.50. Manulife Financial Corp. Canada's biggest insurer, may drop 67 cents, bids showed.

Gold for immediate delivery rose as much as 3.3 percent to $916.15 an ounce in London. Barrick Gold may gain C$1.30 to C$34.97, based on bids. Goldcorp Inc. may rise 84 cents to C$29.67.

U.S. stock-index futures sank after retailers reported September sales that disappointed investors, overshadowing the unprecedented series of interest-rate cuts by central banks.

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