CANADA STOCKS-TSX extends rally on Greece hopes, resources

Tue Jun 28, 2011 11:24am EDT
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   * TSX up 121.74 points, or 0.94 percent, at 13,088.23
 * All 10 of the main groups are higher
 By Solarina Ho
 TORONTO, June 28 (Reuters) - Toronto's main stock index
marched higher on Tuesday morning as optimism over a resolution
to Greece's sovereign debt woes buoyed investor appetite and
helped drive commodity prices higher.
 The overall energy group led advances and was up 1.45
percent. Suncor Energy SU.TO was the most influential gainer
on the index, nearly double the percentage rise of the next
biggest mover. Suncor rose 2.33 percent to C$37.82.
 Cenovus Energy CVE.TO was not far behind, rising 3.14
percent to C$34.45.
 Crude prices extended gains as risk appetite improved on
hopes that a resolution would be reached soon on Greece's debt
problems. [O/R]
 Royal Bank of Canada RY.TO was the second most
influential gainer, climbing 1.08 percent to C$54.48. The
overall financial group, which makes up about a third of the
index, was ahead 0.62 percent.
 The materials group, home to mining firms, climbed 1.04
percent, led by a 1.20 percent rise by Barrick Gold ABX.TO.
The gold miner was trading at C$43.10.
 At 10:57 a.m. (1457 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up 121.74 points, or 0.94
percent, at 13,088.23. All 10 of the index's main groups were
 "Markets are very thin, very volatile. We're waiting on the
Greek situation," said Irwin Michael, portfolio manager at ABC
Funds, noting that Thursday was both the month- and
quarter-end, with Friday a holiday in Canada and Monday a U.S.
 "Some people are just walking away, letting the market
finish wherever it will ... people want to just balance out
their portfolios for the year's quarter-end. It doesn't take
very much to move the market up either way."
 Michael also pointed out that the weakness in the market
over the last two months probably means it's a little oversold
and that it was due for a recovery.
 "There's been a fair amount of negativity factored into the
marketplace, so it doesn't take very much to move it back up,"
he said.
 In corporate news, Westport Innovations WPT.TO, which
announced it was developing a natural gas engine technology
with General Motors, saw its shares jump more than 10 percent
to C$23.57. [ID:nL3E7HS27R]
 On the downside, Yellow Media YLO.TO was one of the
index's biggest decliners, extending Monday's dramatic losses
and falling another 11.30 percent to C$2.12, amid worries over
the telephone directory publisher's struggle to transition from
print to digital. [ID:nL3E7HR2BG]
 ($1=$0.98 Canadian)
 (Reporting by Solarina Ho)