Falling Oil Prices Could Have Negative Effact on EnCana

EnCana Corp. may fall, based on bids on the Toronto Stock Exchange, as oil prices decline on concern that a deepening recession in the U.S. may reduce fuel demand.

Barrick Gold Corp. may rise, after gold prices gained in London on speculation that the U.S. Federal Reserve will cut interest rates, boosting the investment appeal of the metal. BCE Inc. may rally from a record plunge, bids indicated, after Scotia Capital said Telus Corp. is still “very interested,” in a merger with its rival phone company.

The Standard & Poor’s/TSX Composite Index rose 2.4 percent to 8,643.52 yesterday in Toronto, gaining for a fourth consecutive session, its longest winning streak since August. Trading may be below average today as stock and bond markets in the U.S. are closed for the Thanksgiving holiday.

The S&P/TSX, which derives almost three-quarters of its value from financial, energy and raw-materials companies, has fallen 38 percent this year, poised for its worst annual drop after global credit losses approached $1 trillion and commodity prices slumped from records on concern that a recession will hurt demand.

Author: Jo Amey