May 3 (Bloomberg) -- Canadian stocks may rise, after the government introduced a slew of tax cuts that economists say will further stimulate the nation's economy.

Retailers including Loblaw Cos. may gain the most from the national spending plan, which included a one percentage point reduction in the sales tax.

Bullion producers including Barrick Gold Corp. may advance with higher prices for the precious metal.

The Standard & Poor's/TSX Composite Index yesterday added 39.90, or 0.3 percent, to 12,274.46 in Toronto for its third consecutive advance. It is up 8.9 percent this year.

Conservative Prime Minister Stephen Harper's first budget proposed C$29.3 billion ($26.4 billion) over two years in tax cuts and new spending. It lowers the goods and services sales tax to 6 percent from 7 percent starting July 1, and pays an annual C$1,200 to families for every child under six. It also plans to cut corporate income tax to 19 percent from 21 percent by 2010.

The tax cuts and spending increases may add an additional half a percentage point to economic growth over the next 12 months, Sherry Cooper, chief economist at BMO Nesbitt Burns in Toronto, told CBC Television yesterday.

Loblaw

Loblaw Cos., Canada's biggest grocer, was shown gaining 32 cents to C$56.24, according to bids submitted to the Toronto Stock Exchange. Shoppers Drug Mart Corp., the country's biggest pharmacy chain, may add 1 cent to C$44.51.

Gold rose to a 25-year high in London as mounting political tension over Iran's nuclear program prompted investors to buy the metal. Gold for immediate delivery rose as much as 1.2 percent to $676.75 an ounce, the highest since October 1980. It traded most recently at $673.81.

Barrick, the No.1 producer of gold in the world, was shown gaining 15 cents to C$34.75, according to bids. Barrick is scheduled to report first-quarter results today.

Not all raw-materials producers may rise. Copper futures dropped in London, erasing earlier gains. Inco Ltd., a producer of nickel and copper, may fall 35 cents to C$63.03.

Crude oil was little changed, trading above $74 a barrel before a United Nations hearing on Iran's nuclear program, amid concern oil supplies will be disrupted from the country.

Oil for June delivery fell 10 cents to $74.51 a barrel.

BCE

Share of BCE Inc. may be active. Canada's biggest telecommunications provider said first-quarter profit was little changed as the company cut procurement and other costs to help offset rising pension expenses.

U.S. stock-index futures slipped after Time Warner Inc. reported revenue that trailed analysts' estimates and Adobe Systems Inc. said profit will be at the low end of its previous forecast.

Standard & Poor's 500 Index futures expiring in June lost 1.40 to 1316.70 at 8:11 a.m. in New York. Dow Jones Industrial Average futures retreated 23 to 11,431. Nasdaq-100 Index futures rose 2.75 to 1700.50.

The following is a list of companies whose shares may have unusual price changes. This preview includes news that broke after markets closed yesterday. Stock symbols are in parentheses after names. Prices are from the last close.

Enbridge Inc. (ENB CN): Canada's second-biggest pipeline company said first-quarter net income fell to C$192.6 million ($174.1 million), or 56 cents a share after payment of preferred dividends, from C$222.3 million, or 65 cents, a year earlier, Calgary-based Enbridge said in a statement today. Enbridge shares slipped 11 cents, or 0.3 percent, to C$33.13.

Hub International Ltd. (HBG CN): The broker of car and home insurance said in a statement that its New York unit agreed to buy Hirsch Wolf & Co. LLC, a property and casualty insurer specializing in health care. Hub, which didn't disclose terms of the purchase, said Hirsch Wolf would add $7 million to the unit's revenue base. Hub International fell 32 cents, or 1.1 percent, to C$29.15.

SunOpta Inc. (SOY CN): The maker of organic food said in a statement that revenue in the first quarter climbed to US$133.3 million (C$147.6 million). Four analysts in a Thomson Financial survey expected $128.1 million, the average estimate. SunOpta rose 57 cents, or 5.1 percent, to C$11.71.

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

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