TORONTO, Jan. 5 /PRNewswire-FirstCall/ -- CIBC World Markets has raised its 2006 year-end target for the TSX Composite from 12,000 to 13,200 in light of continuing strength in energy, and more recently, gold stocks. Jeff Rubin, Chief Strategist at CIBC World Markets, expects the TSX energy sector to post a nearly 40 per cent gain in 2006, following on the heels of an over 60 per cent rise in 2005. CIBC World Markets forecasts oil prices will average over US$70 per barrel and that natural gas prices will average US$13 per million Btu. "In a world of growing depletion of conventional energy assets, global energy firms are likely to continue to bid aggressively for oil sand assets, and in the process, bid up cash flow multiples in the energy sector," says Mr.Rubin. The CIBC World Markets target of 13,200 implies a 19 per cent total return, including dividends, from the TSX composite this year, down from the 24 per cent total return posted in 2005. However, returns are likely to remain heavily skewed toward the energy sector. Excluding energy stocks, the TSX is expected to rise by only 7 per cent, little more than half of last year's 13 per cent gain. In addition to energy, CIBC World Markets is optimistic on gold stocks, income trusts and long-term government bonds. "A forecast of a US$575 to US$600 bullion price points to another year of double-digit gains from gold stocks while continued economic growth and a further decline in long-term interest rates should support another banner year in the income trust market," notes Mr. Rubin. While Mr. Rubin expects two more rate hikes from the Bank of Canada, he remains positive on the outlook for long-term interest rates, expecting long Canada yields to fall by at least another 30 basis points this year. Mr. Rubin noted that while yield curve inversions have historically been associated with recessions, this year's expected inversion is likely to signal only slower economic growth and eventual Bank of Canada rate cuts in 2007. CIBC World Markets is the wholesale banking arm of CIBC, providing a range of integrated credit and capital markets products, investment banking, and merchant banking to clients in key financial markets in North America and around the world. We deliver innovative full capital solutions to growth- oriented companies and are active in all capital markets. We offer advisory expertise across a wide range of industries and provide top-ranked research for our corporate, government and institutional investor clients. DATASOURCE: CIBC CONTACT: Media Inquiries: Jeff Rubin, Chief Economist and Chief Strategist, Managing Director, CIBC World Markets, (416) 594-7357; or Rob Mcleod, Senior Director, Communications and Public Affairs, (416) 980-3714; Archived images on this organization are searchable through CNW Photo Archive website at http://photos.newswire.ca/. Images are free to accredited members of the media.

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