CANADA STOCKS-Greek debt deal spurs TSX to five-month high

Tue Feb 21, 2012 4:54pm EST
 
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* TSX ends up 165.06 pts, or 1.3 pct, at 12,623.36

* Highest close since Sept. 8, 2011

* Greek debt deal lifts risk appetite

* Domestic economic data mixed

By Jon Cook

TORONTO, Feb 21 (Reuters) - Canadian stocks surged to a five-month high on Tuesday, with mining and oil shares leading the way, as risk appetite grew after euro-zone finance ministers sealed a bailout package for Greece.

The 130 billion euro ($172 billion) deal was finalized after euro-zone officials forced Athens to commit to unpopular cuts and as private bondholders agreed to accept deeper losses. It means Greece will not default on 14.5 billion euro in bond redemptions due next month.

"This is about taking the downside risk off the market, but it doesn't give you the upside part of the equation," said George Vasic, equity strategist and chief economist at UBS Securities Canada. "It's got to be sustained by good (global) economic data."   Continued...