CANADA STOCKS-TSX pushes higher after Greece austerity vote

Wed Jun 29, 2011 11:20am EDT
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   * 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
 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)