June 27, 2011 / 8:54 PM / 8 years ago

CANADA STOCKS-TSX snaps 3-day loss as banks, materials rise

 * TSX ends up 57.60 points, or 0.45 percent, at 12,966.49
 * Financials, materials lead gains  (Updates to close, adds details, quotes)
 By Claire Sibonney
 TORONTO, June 27 (Reuters) - Toronto’s main stock index pushed higher on Monday following three sessions of losses as investors picked up worn-down shares, especially in the index’s materials and financials groups.
 Canadian financial stocks, up 0.7 percent, followed their U.S. counterparts higher after regulators announced global bank capital rules that the market viewed as less onerous than it had expected. [ID:nLDE75O053]
 Among the most heavily weighted gainers, Bank of Nova Scotia (BNS.TO) rallied 1.5 percent to C$57.89, Toronto-Dominion Bank (TD.TO) rose 1.2 percent to C$79.60, and Manulife Financial (MFC.TO) added 1.4 percent to C$16.21.
 “I think the market has been oversold. I think it’s trying to put in a bottom here,” said John Kinsey, portfolio manager at Caldwell Securities, noting the market could see a few good days this week due to end-of-month and end-of-quarter buying.
 Resource shares were firmer even though the Thomson Reuters-Jefferies CRB index .CRB, a global commodities benchmark, fell 0.4 percent.
 Fertilizer producer Potash Corp POT.TO was the most influential gainer, climbing 3.1 percent to C$53.52 and helping to push up the index’s materials group 0.5 percent. “It’s been beaten up pretty badly,” Kinsey said of Potash.
 On the other side of the equation, Yellow Media Inc YLO.TO was the heaviest decliner, ending down more than 18 percent at C$2.44. The telephone directory publisher is struggling to switch to digital from print while managing its debt burden and its shares traded at a lifetime low after analyst downgrades. [ID:nL3E7HR2BG]
 Kinsey said the market’s focus will stay fixed on Greece, where parliament will vote on austerity measures on Wednesday that will be critical to the government securing a new bailout package. [ID:nLDE75P0BM]
 “It really is not Greece per say that’s important. Their economy is small in the context of the whole euro scene, but if it forces a contagion that spreads to Italy and Spain ... that is really what is at stake here,” Kinsey said.
 The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended up 57.60 points, or 0.45 percent, at 12,966.49.
 Francis Campeau, a broker at MF Global Canada in Montreal, said investors were eyeing resistance around 13,200-13,300, near the 200-day moving average.
  He noted volumes were light and said he did not expect big moves until more headlines emerge from Greece this week.
 “There’s the vote and the question of how they’re going to package all those Greek bonds, and until these issues are cleared up or settled, the market risk will remain to the downside,” he said.
 “Buyers will step in only when they can add a bit more visibility out of Europe.”
 TMX Group (X.TO) dropped almost 3 percent to C$43.89 as the two bidders to take over the operator of the Toronto Stock Exchange stepped up their last-minute pushes for support ahead of a shareholder vote on Thursday. [ID:nN1E75Q0PF]
  ($1=$0.99 Canadian)  (Reporting by Claire Sibonney; editing by Peter Galloway)                                        

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