CANADA STOCKS-TSX rallies as markets foresee Greece resolution

Tue Jun 28, 2011 4:55pm EDT
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 * TSX ends up 138.49 points, or 1.07 percent, at 13,104.98
 * All 10 of the main groups are higher
 (Updates to close, adds details, comments)
 By Claire Sibonney
 TORONTO, June 28 (Reuters) - Toronto's main stock index
ended sharply higher on Tuesday as heightened optimism that the
Greek debt crisis would be resolved boosted commodity prices
and investor confidence.
 Hopes that Greece can push an unpopular austerity program
through parliament on Wednesday and avoid becoming the first
sovereign default in the euro zone prompted investors to flock
to riskier assets, despite violent street protests in Athens
against spending cutbacks. [MKTS/GLOB]
 The index's energy group led advances, jumping 1.8 percent
as oil prices rallied. The index's top three most influential
gainers were in the group: Canadian Natural Resources CNQ.TO
surged almost 3 percent to C$39.44, Suncor Energy SU.TO
advanced 1.5 percent at C$37.52, while Cenovus Energy CVE.TO
rose 3.6 percent to C$34.61.
 "I think it all hinges on Greece now," said Elvis Picardo,
strategist and vice president of research at Global Securities
in Vancouver.
 "This is a problem that has transfixed the markets for
quite a few weeks and just based on the latest action it does
seem like investors are optimistic that the package will pass
and that we will be able to avert a wider potential
 The Toronto Stock Exchange's S&P/TSX composite index
.GSPTSE ended up 138.49 points, or 1.07 percent, at
13,104.98. All 10 of the index's main groups were higher,
including the weighty materials sector, up 1.4 percent, and
financials, up 0.6 percent.
 In individual company news, SNC-Lavalin Group SNC.TO rose
1.6 percent to C$56.64 after a Globe and Mail report said the
Canadian government was set to announce the sale of Atomic
Energy of Canada to SNC, Canada's biggest engineering firm.
 Shares of Westport Innovations WPT.TO, which announced it
was developing a new natural-gas engine technology with General
Motors, jumped more than 10 percent to C$23.55.
 On the downside, Yellow Media YLO.TO was one of the
index's biggest decliners, extending Monday's dramatic losses
and falling another 4.6 percent to C$2.28 on worries over the
telephone directory publisher's struggle to transform from
print to digital. [ID:nL3E7HS2DZ]
 ($1=$0.98 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)