4 Min Read
* TSX up 145.28 points, or 1.13 pct, at 13,002.98
* Nine of 10 main groups higher
* Materials up 1.8 pct, energy ahead 1.35 pct
* Sino-Forest dives 50 pct
* RIM rises more than 5 pct (Adds details, comments)
By Solarina Ho
TORONTO, June 21 (Reuters) - Toronto's main stock index rallied more than 1 percent on Tuesday morning to bounce back above 13,000 points, fueled by firmer commodity prices that rose on optimism for a deal to resolve Greece's debt crisis.
Consensus grew that Greek Prime Minister George Papandreou would survive a confidence vote, a key hurdle the country must clear to avert a debt default. The vote is due around 5 p.m. EDT (2100 GMT). [ID:nL6E7HL0C1]
The positive sentiment whetted investor appetite for riskier assets and drove world stocks higher. [MKTS/GLOB]
"I think it's a relief rally here. Looks like Greece is going to pass their austerity measures," said Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier.
"People were looking at the abyss: what if Greece doesn't agree to these plans, money's held back, and there's some contagion and we're back to 2008?"
At 10:52 a.m. (1452 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 145.28 points, or 1.13 percent, at 13,002.98. Nine of the 10 main groups were firmly in positive territory.
"Temporarily, it looks like we've hit a bottom here, because bad news is being somewhat forgiven and good news is being treated pretty heartily," said Nakamoto, but he cautioned that the confidence may not last long.
"Something else could hit us over the head and we're back down. But, having said that, it's better than if we keep going down, down, down."
Materials and energy issues rose 1.8 percent and 1.35 percent respectively. The two groups together make up about 50 percent of the TSX index.
Canadian Natural Resources (CNQ.TO) was the most influential stock on the positive side, climbing 2.67 percent to C$38.83. It was followed by Suncor Energy (SU.TO), which rose 1.46 percent to C$37.50.
Potash Corp (POT.TO) was up 1.26 percent at C$51.26 and Teck Resources TCKb.TO advanced 2.71 percent to C$44.40.
Toronto-Dominion Bank (TD.TO) rounded up the top 5 gainers with a 0.73 percent rise to C$79.50. The financial group, which makes up about a third of the index, climbed 0.63 percent.
Oil prices rebounded from a four-month low while copper prices climbed more than 1 percent as the euro gained against the U.S. dollar ahead of the Greek vote. [O/R] [MET/L]
Lingering worries over the possibility that Greece's debt crisis could spread to other euro zone countries, however, also helped bolster safe-haven gold. [GOL/]
On the downside, Sino-Forest TRE.TO was among the biggest decliners, free-falling more than 50 percent to C$1.34, after its biggest shareholder, billionaire hedge fund manager John Paulson, dumped his entire 14 percent stake in the company late Monday. [ID:nN1E75K0GB] [ID:nN1E75J0AK]
EnCana (ECA.TO) was the biggest weight on the index, falling 2.68 percent to C$28.68. The company called off a proposed C$5.4 billion deal to sell half its holdings in a prolific shale gas region in British Columbia to PetroChina, saying it would seek new partners. [ID:nL3E7HL1HH]
Research In Motion RIM.TO, which has reportedly begun handing out layoff notices, was up 5.55 percent to C$26.82 after falling more than 26 percent following Friday's disappointing results and outlook. [ID:nN1E75K04E]
($1=$0.97 Canadian) (Reporting by Solarina Ho; editing by Rob Wilson)