The Toronto stock market made solid gains Tuesday as commodity prices rebounded while investors kept their eyes on a key Greek parliamentary vote aimed at helping the country avoid a default on its debts.
The S&P/TSX Composite Index vaulted 138.49 points, or 1.1%, by session’s end to 13,104.98
The Canadian dollar picked up 0.36 cents to 101.77 cents U.S.
Investors were hoping that Greek Prime Minister George Papandreou will muster enough votes to get the euro28 billion ($40-billion U.S.) austerity bill through Parliament in a vote. But the measures are proving unpopular, and Greek unions began striking Tuesday, a day before the vote, in the hopes of pressuring lawmakers to vote against the package.
If the package fails, Greece will face a default on its debts even though French banks are planning to accept slower repayment of their holdings of Greek bonds.
Commodity traders seemed more optimistic about the Greek debt situation and its impact on the global recovery.
In corporate news, Westport Innovations Inc. has signed a deal with General Motors to help develop natural gas engine technology. Shares gained 11.2% or $2.39 to $23.65.
Reports say that the federal government is set to announce the sale of Atomic Energy of Canada Ltd. to Montreal-based engineering firm SNC-Lavalin Group. Shares were up 1.7% or 93 cents to $56.70.
A large block of Dollarama shares is trading hands at $32.50 per common share, about 67% above the stock’s price when the Montreal-based discount retailer went public in October 2009. The seller is an affiliate of Bain Capital Partners that will sell all of its remaining 9.15 million shares, or 12% of the total, for nearly $298 million. Shares fell 25 cents to $32.50.
Shares in TMX Group Inc. lost 1.3% or 55 cents to $43.34 after it said its amended plan to merge with London Stock Exchange Group still has the support of Glass, Lewis & Co., a firm that advises fund managers on corporate votes. A crucial shareholder vote is scheduled for Thursday.
ON BAYSTREET
The TSX Venture Exchange faded 2.04 points to 1,865.68, while the Nasdaq Canada index moved forward 7.90 points to 539.08
In Toronto, all but one of the 14 subgroups were higher on the day. Metals and mining stocks climbed 3.4%, global base metals progressed 2.4% and industrial stocks were 2% stronger.
Real-estate stocks backtracked 0.1%, the only losing group.
ON WALLSTREET
In New York, stocks posted solid gains, as investors cheered a report showing home prices rose for the first time in eight months in April.
The Dow Jones Industrial Average had gained 145.13 points, or 1.2%, by the closing bell to 12,188.70
The S&P 500 popped 16.57 points to 1,296.67. The Nasdaq Composite was up 41.03 points at 2,729.31.
The S&P 500 was led higher by shares of Nike, which jumped more than 8% a day after the athletic shoe maker posted better-than-expected profit and sales, citing strength in its Chinese and other overseas markets.
Top performers on the Dow included energy companies Exxon Mobil and Chevron, as oil prices jumped more than 1%. Also strong performers among the blue chips were Home Depot and Caterpillar
Shares of GSV Capital fell 6%, a day after a 42% rally on its disclosure that it acquired 225,000 Facebook shares at $29.28 U.S. per share. The deal puts the value of Facebook, still privately held but expected to make an initial public offering, at about $70 billion U.S.
Accenture's stock rose 4% after the management consultancy was tapped to join the S&P 500. Accenture will replace Marshall & Ilsley, which is in the process of being acquired by the Bank of Montreal
Youku.com shares soared 35% after the company announced a video-on-demand service in coordination with Time Warner's Warner Bros.
Shares of LinkedIn jumped 12% after analysts at several major investment banks, including Morgan Stanley and JPMorgan Chase, put the social media site on their "buy" lists.
On the economic front, the S&P Case-Shiller home price index, considered one of the official gauges on the housing market, rose 0.7% in April -- breaking an eight-month drop streak.
One expert said that while April Case-Shiller numbers were solid, he doesn't believe the report indicates a housing market bottom.
The Conference Board's consumer confidence survey for June came in at 58.5, lower than the unchanged at 60.8 reading economists had expected.
The price on the benchmark 10-year U.S. Treasury was down, boosting yields to 3.04% from Monday’s 2.93%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.31 to $92.92 U.S. a barrel
Gold futures for August delivery rose $3.80 to $1,500.20 U.S. an ounce.
