June 29, 2011 / 3:23 PM / 6 years ago

CANADA STOCKS-TSX pushes higher after Greece austerity vote

3 Min Read

   * TSX up 67.58 points at 13,172.56
 * Eight of 10 main sectors higher)  (Updates with details, commentary)
 By Claire Sibonney
 TORONTO, June 29 (Reuters) - Toronto's main stock index pushed higher in choppy trading on Wednesday, after the Greek parliament approved a tough austerity program that was widely expected.
 The index's three most influential sectors were all higher, with energy up 0.7 percent, materials up 1.2 percent and financials edging 0.1 percent higher.
 Among the biggest gainers, Potash Corp (POT.TO) jumped 2 percent to C$55.07, Teck Resources TCKb.TO gained 2.1 percent to C$48.35 and Barrick Gold (ABX.TO) rose 1 percent to C$43.63.
 Despite worsening violence, Greek lawmakers approved a deeply unpopular five-year package of spending cuts, tax rises and state asset sales in a move vital to securing international funds and preventing the euro zone's first sovereign debt default. [ID:nL6E7HT0PS]
 "It just reduces the risk of a more dramatic event, and what Greece needs is essentially time and stability -- and it looks like they bought some time and stability today," said Youssef Zohny, portfolio manager at Van Arbor Asset Management in Vancouver. "Financially ... not in terms of riots."
 The outcome of the vote was not a surprise to many market players however, as riskier assets had rallied earlier in the week leading up to the decision.
 "Some people are going to sell the news this morning but I think in terms of the bigger picture, you do remove one large risk that's been in the market and that essentially put Greece back on the back burner," added Zohny
 At 11:05 a.m. (1505 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 67.58 points, or 0.5 percent, at 13,172.56, after briefly falling into negative territory. Eight of the 10 main groups were stronger.
 Zohny also pointed to data showing a rebound in Japanese industrial production last night and mildly encouraging report on U.S. pending home sales shortly after the market open.
 The month-end and quarter-end flows on Thursday was also seen as contributing to volatility.
  ($1=$0.97 Canadian)  (Reporting by Claire Sibonney; editing by Rob Wilson)                                        

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below