Energy producers Leds Canadian Stocks

Canadian stocks may rise for a second day, led by energy producers, after Western Oil Sands Inc. agreed to be bought by Marathon Oil Corp. for $5.46 billion, and crude oil prices advanced.

The proposed deal may allay investor concern that difficulties in the credit market are ending the takeover boom, which led to a worldwide equity selloff last week that wiped out more than $2 trillion in market value.

The Standard & Poor's/TSX Composite Index gained 116.19, or 0.9 percent, to 13,864.72 yesterday in Toronto, after dropping 5.7 percent last week.

Shares of Western Oil Sands may climb C$1.87 to C$36, based on bids already submitted on the Toronto Stock Exchange. Owners of Calgary-based Western will get C$3.8 billion in cash and $2 billion worth of Marathon stock, Houston-based Marathon said in a statement.

Suncor Energy Inc., the second-largest oil-sands producer, may add 78 cents to C$95.45, bids indicated.

Shares of Canadian Natural Resources Ltd., the country's second-biggest natural-gas producer, may advance 73 cents to C$73.14, according to bids.

Crude oil for September delivery rose as much as 0.8 percent to $77.47 a barrel in electronic trading in New York, the highest since Aug. 9, on expectations U.S. refiners will step up their operations, increasing demand for crude.

Natural-gas futures gained for a fifth straight day in New York, adding 2.2 percent to $6.644 per million British thermal units.

A gauge of energy stocks, which accounts for more than a quarter of the Canadian benchmark's value, lost 6.5 percent last week before gaining 0.3 percent yesterday. Today, it may pace gains in the market.

U.S. Stock Futures

U.S. stock-index futures advanced as concerns eased that the subprime-credit crisis will hurt economic and profit growth. S&P 500 Index futures expiring in September gained 9.90 to 1490.50 at 8:49 a.m. in New York. Dow average futures added 89 to 13,500. Nasdaq-100 Index futures climbed 10.25 to 2003.50.

The following shares may have unusual price changes. This preview includes news that broke after markets closed yesterday. Symbols are in parentheses after company names and prices are from the last close.

Alcan Inc. (AL CN): The aluminum producer being acquired by Rio Tinto Plc for $38.1 billion said second-quarter profit fell 3.7 percent to $438 million, or $1.17 a share, from $455 million, or $1.20, on costs for energy and gains by the Canadian dollar versus the U.S. currency. Sales rose 8.2 percent to $6.61 billion, Montreal-based Alcan said in a statement. Shares of Alcan rose C$1.25, or 1.2 percent, to C$103.62.

Fording Canadian Coal Trust (FDG-U CN): The world's second- largest exporter of coal used to make steel reported a profit of 87 cents a share before one-time items. On that basis it was expected to earn 63 cents a share in the second quarter, the average estimate of 5 analysts in a Bloomberg survey. The shares rose C$1.38, or 4.1 percent, to C$35.02.

Global Railway Industries Ltd. (GBI CN): The maker of rail equipment said it will buy assets from Canada Allied Diesel Co., a seller of train engine parts, for C$22 million. The shares fell 8 cents, or 1.6 percent, to C$4.80.

Pet Valu Canada Inc. (PVC CN): The seller of pet food and supplies said it may be included in a class-action lawsuit on pet food alleged to contain tainted ingredients. The company said it is in the early stages of an investigation and that potential losses from the lawsuit are ``not material.'' The shares dropped 69 cents, or 5.3 percent, to C$12.40.

Sun Life Financial Inc. (SLF CN): The second-largest Canadian insurer said in a statement that profit rose 15 percent to a record C$590 million ($557 million) or C$1.02 a share, from C$512 million, or 88 cents, as higher stock prices increased earnings from its mutual fund businesses. The shares lost 29 cents, or 0.6 percent, to C$49.05.

Teck Cominco Ltd. (TCK/B CN): The world's second-largest zinc miner said in a statement that second-quarter profit fell 21 percent to C$485 million ($455.2 million), or C$1.14 a share, from C$613 million, or C$1.42, as the company produced less copper and the Canadian dollar rallied. Excluding one-time items, the company earned C$1.02 a share, trailing the C$1.14 average estimate of 11 analysts surveyed by Bloomberg. Teck shares gained 57 cents, or 1.2 percent, to C$46.70.

source:bloomberg.com