TSX at two-week high on Greece hopes, technicals

Tue Jun 23, 2015 4:50pm EDT
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By Alastair Sharp

TORONTO (Reuters) - Canada's main stock index hit its highest close in more than two weeks on Tuesday, extending Monday's sharp rebound, as heavyweight energy, financial and mining stocks gained in part on optimism about a deal to stave off Greek default.

The energy sector jumped most, up 1.7 percent, as crude prices popped higher ahead of U.S. data expected to show strong demand for oil products. [O/R]

Top gainers included Suncor Energy (SU.TO: Quote), which rose 2.3 percent to C$34.78, and Canadian Natural Resources Ltd (CNQ.TO: Quote), which added 2.5 percent to C$35.93.

But gains on the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE were widespread, with well over twice as many advancing issuers as decliners.

"It shows how much liquidity there is in the market as soon as you get release out of the whole Greece situation," said Sid Mokhtari, market technician and director of institutional equity research at CIBC World Markets.

The financials group gained 0.9 percent and materials, which includes miners, added 0.7 percent.

While the catalyst appeared to be Greece, Mokhtari said the excess liquidity itself was a more important sign for investors.

"There is a slow rotation occurring out of the bond market and into stock markets" as investors act on assumptions of higher U.S. interest rates coming from the U.S. Federal Reserve.   Continued...

A man walks past an old Toronto Stock Exchange (TSX) sign in Toronto, June 23, 2014.  REUTERS/Mark Blinch