Canadian energy stocks may fall for a second day on concern that a proposal to raise royalties on oil and gas producers may hurt energy companies’ growth and profits.

EnCana Corp., which is spending billions of dollars to develop two oil-sands projects in Alberta, may pace declines. Raw-materials producers may gain, led by Barrick Gold Corp., as bullion prices climbed to a 27-year high.

The energy group, accounting for a quarter of the main stock index, yesterday fell the most in seven weeks, dragging the benchmark to a loss, even as crude oil prices reached a record and the Canadian dollar was near parity with its U.S. counterpart for the first time in 30 years.

The Standard & Poor’s/TSX Composite Index fell 65.62, or 0.5 percent, to 13,939.78 yesterday in Toronto. It has regained about two-thirds of its 12 percent drop from a July 19 record, for an advance of 8 percent this year.

The province of Alberta should raise royalty rates to reap the benefits of rising prices, a report from a government-appointed task force said on Sept. 18. Alberta’s share of oil-sands revenue would rise to 64 percent from 47 percent, the report said. The government’s share from oil and gas wells would rise 5 percentage points to 49 percent and 63 percent, respectively.

EnCana, Canada’s largest energy company by market value, may drop 87 cents to C$62.50, based on bids already submitted on the Toronto Stock Exchange. Suncor Energy Inc., the second-largest producer of oil from the tar-sands, may fall C$1.53 to C$95 after declining 4.5 percent yesterday.

Getting Out

“We want to be out of all things Canadian,” said Dennis Gartman, an economist and editor of the Suffolk, Virginia-based Gartman Letter, in yesterday’s edition of his bulletin. He called Suncor his “best trade” and said “the party ended last evening.”

Crude oil traded below yesterday’s high amid concern U.S. economic growth will slow, curbing demand in the world’s largest energy consumer.

Canada’s dollar today rose to the highest in almost 31 years as the U.S. weakened against major currencies and prices of Canadian commodity exports surged. The currency approached the $1 level for the first time since 1976.

Gold rose to a 27-year high in New York and London as the dollar sank to a record low against the euro, spurring demand for alternative investments.

Barrick Gold, the world’s biggest bullion miner, may gain 40 cents to C$39.65. Kinross Gold Corp., Canada’s third-largest producer, may advance 29 cents to C$14.98, bids indicated.

U.S. Stock Futures

U.S. stock futures were little changed after FedEx Corp. cut its profit forecast and Bear Stearns Cos. reported its biggest earnings drop since at least 1998. Goldman Sachs Group Inc., the world’s largest securities firm, reported a 79 percent increase in net income for the third quarter.

S&P 500 Index futures expiring in December lost 2.4 to 1,539 at 8:47 a.m. in New York. Dow Jones Industrial Average futures added 2 to 13,900 and Nasdaq 100 Index futures dropped 5.5 to 2,058.5.

The following shares may have unusual price changes. This preview includes news that broke after markets closed yesterday.

Africo Resources Ltd. (ARL CN): The miner said a Congolese court has restored its rights to a copper and cobalt concession. The Tribunal de Grande Instance de Kinshasa/Gombe ruled that Africo’s Societe H&J Swanepoel Sprl unit still owns 75 percent of Swanmines Sprl, a joint venture with the Democratic Republic of Congo’s state-owned Gecamines, the Vancouver-based company said yesterday in an e-mailed statement. Rival Akam Mining Sprl had claimed ownership of Swanmines stake. The shares fell 29 cents, or 15 percent, to C$1.65.

BCE Inc. (BCE CN): The sale of Canada’s biggest phone company to a group led by the Ontario Teachers’ Pension Plan may be delayed by public hearings before Canada’s federal broadcast regulator, the Globe and Mail reported, citing people it didn’t name.

The Canadian Radio-television and Telecommunications Commission is expected to schedule the hearings for mid-January, which could push the transaction’s closing to April, the newspaper said. BCE has said it expected to close the C$35 billion ($34.7 billion) deal in the first quarter of 2008, the newspaper reported. BCE gained 17 cents, or 0.4 percent, to C$40.60.

Birch Mountain Resources Ltd. (BMD CN): The company that’s developing the Muskeg Valley Quarry in Alberta said in a statement carried on PRNewswire that that it will explore “strategic alternatives to enhance shareholder value,” including a joint venture, merger or sale. The shares fell 8 cents, or 5.2 percent, to C$1.47 and have halved this year.

Boralex Power Income Fund (BPT-U CN): The owner and operator of power stations in Quebec said in a statement carried on Canada NewsWire that it ended an effort to sell itself begun in March. Given the current state of financial markets a transaction would not be in the interests of unit holders, Boralex said. The shares gained 4 cents, or 0.4 percent, to C$9.56.

Canadian National Railway Co. (CNR CN): The country’s largest railroad agreed to sell its Central Station complex in Montreal to Homburg Invest Inc. (HII/B CN) for C$355 million ($350 million). Canadian National will lease back its headquarters and passenger rail facilities from Homburg as part of the agreement, the Montreal-based carrier said in a statement.

Canadian National fell 65 cents, or 1.1 percent, to C$57.84, while Homburg shares added 15 cents, or 2.7 percent, to C$5.65.

Cott Corp. (BCB CN): North America’s biggest maker of store- brand soft drinks lowered its earnings forecast for the rest of the year because of a decline in U.S. and Canadian soft-drink sales and rising commodities costs. Earnings from operations this year will be “substantially” lower than 2006, and revenue will be little changed, the Toronto-based company said today in a statement carried on CCN Matthews. The shares gained 30 cents, or 3 percent, to C$10.30.

Eldorado Gold Corp. (ELD CN): The bullion miner said a study of its Efemcukuru project in Turkey showed the mine can produce 112,400 ounces of gold a year at a cost of $226 an ounce. Ore from the mine will be processed at Eldorado’s Kisladag mine, the Vancouver-based company said today in a regulatory filing. The shares gained 19 cents, or 3.3 percent, to C$5.98.

Petro-Canada (PCA CN): The country’s third-largest oil company raised its stake in the Fort Hills oil sands project to 60 percent. Petro-Canada said it increased its “working interest” in the project by 5 percentage points, Partner Teck Cominco Ltd. (TCK/B CN) will raise its stake to 20 percent from 15 percent, Petro- Canada said today in a statement distributed by Marketwire.

UTS Energy Corp. (UTS CN), a third partner, will cut its holding to 20 percent from 30 percent. Petro-Canada and Teck Cominco will each fund an additional $375 million in the project under the agreement. Petro-Canada dropped C$1.18, or 2 percent, to C$57.80 and UTS slid 73 cents, or 12 percent, to C$5.46. Teck Cominco added C$1.18, or 2.6 percent, to C$46.64.

Sierra Wireless Inc. (SW CN): The maker of wireless data- communication gear said in statement that it raised $78.4 million by selling 3.5 million shares at $22.40 apiece to a group of brokers led by CIBC World Markets. The shares gained 37 cents, or 1.6 percent, to C$24.04 before trading was halted in Toronto.

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

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