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

Mon Jun 27, 2011 4:50pm EDT

 * 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)







































FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.