TORONTO (Reuters) - Canada’s main stock index rallied on Monday, sharing in global market relief that all-night talks between Greece and euro zone leaders had resulted in a deal that would keep Athens afloat and a part of the euro monetary union.
While Greece has little direct bearing on Canadian equities, investors had fretted about the fallout if the talks to keep the country in the euro zone had failed.
“It’s a good news story from a standpoint of removing a little of the uncertainty out of Greece in the short term, with all the volatility. So markets are quite happy,” said Sun Life Global Investments Chief Investment Officer Sadiq Adatia.
The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 122.15 points, or 0.85 percent, higher at 14,533.22.
All 10 of the index’s main groups advanced, with the heavyweight energy and financial groups giving the index the biggest boosts despite making the smallest actual gains.
For investors with a longer-term outlook, the index’s recent slip to lows last seen in January was a compelling buying opportunity.
“We’ve done a lot of investing over the last couple of weeks,” said Bryden Teich, associate portfolio manager at Avenue Investment Management.
He said opinion is split on whether the Bank of Canada will hold or cut interest rates on Wednesday, leading to jockeying in sectors such as utilities that are sensitive to the rate outlook.
The always influential Valeant Pharmaceuticals International (VRX.TO) rose 1.6 percent to C$299.32, helping pull the healthcare sector up 2 percent.
Oil and gas names were mixed, with oil prices down as talks on an Iranian nuclear deal kept open the possibility of new supply coming to markets. [O/R]
Home Capital Group Inc (HCG.TO) sank 18.9 percent to C$34.06 after the lender was hit by analysts’ downgrades and lower price targets after reporting a fall in mortgage originations.
Advancing issues outnumbered decliners by 179 to 67, a 2.67-to-1 ratio on the upside. The index posted five new 52-week highs and 14 new lows.
Additional reporting by Solarina Ho; Editing by Nick Zieminski; and Peter Galloway