TSX rebounds as Greece, China hopes calm markets

Fri Jul 10, 2015 6:52pm EDT
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By Alastair Macdonald

TORONTO (Reuters) - Canada's main stock index jumped on Friday, with investors shrugging off heavy losses from earlier in the week as worries over the Greek debt crisis abated and once-slumping Chinese equities gained strongly for a second straight session.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 132.58 points, or 0.93 percent, at 14,411.07. It fell 1.8 percent over the course of a volatile week.

"Heading into the week people were talking about 'Grexit', and in the last 24 to 48 hours, it feels like a breakthrough," said Manash Goswami, a portfolio manager at First Asset Investment Management.

"I'm not sure if it's a relief rally, if we're coming off oversold levels, or if it's just people saying it looks like something is going to get done in Europe."

Greece's prime minister appealed to his party's lawmakers to back a tough reform package after abruptly offering creditors last-minute concessions to try to save the country from financial meltdown.

Meanwhile in China, stocks which had been plunging on panic selling steadied after support measures from Beijing took hold.

"Everything's settled down at least for one day," said John Kinsey, portfolio manager at Caldwell Securities, pointing to a 'two steps forward, one step backwards' trend. "Today, I guess, we're going two steps forward."

Valeant Pharmaceuticals International (VRX.TO: Quote), always influential in index moves, rose 4 percent to C$294.65, to lead gainers, while financial names filled the next three spots of biggest index boosters.   Continued...

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