Canadian shares advanced, joining a global rally amid optimism that an eleventh-hour deal could be reached between debt-laden Greece and its creditors.
The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) rose 0.9 percent to 14,791.24 at 12:13 p.m. in Toronto. More than two shares advanced for every issue that declined as nine out of ten share groups were in the positive territory.
The Wall Street Journal reported that the Greek government’s latest plan makes a potentially major concession on cutting deficits in its pension system. The plan was formally submitted to creditors today and could be a big step toward ending a months long deadlock that has spurred talk of a potential Greek exit from the eurozone. Still, eurozone leaders cautioned that an immediate breakthrough was unlikely.
The energy sector, the main index's second most heavily weighted group, gained 0.9 percent. Suncor Energy (TSE:SU), Canada's largest oil sands producer, gained 1.3 percent to C$34.14. Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, added 1.7 percent to C$35.08.
Zargon Oil & Gas (TSE:ZAR) slumped 7.9 percent after saying it is cutting its monthly dividend to C$0.01 per share from C$0.03, hurt by slumping oil prices. The oil and natural-gas company had hedged some production at a higher price but those hedges have now expired.
Light, sweet crude for July delivery recently fell 0.9 percent to $59.09 a barrel on the New York Mercantile Exchange.
Oil prices fell today, erasing earlier gains, on continued uncertainty about Greek debt negotiations and concerns about the oversupplied global crude market.
The materials sub-index, which includes mining shares, slid less than 0.1 percent as gold fell more than 1 percent. Goldcorp (TSE:G), Canada’s largest gold miner by market value, was up 0.1 percent at C$20.14. Barrick Gold (TSE:ABX), the second-largest, slipped 1.9 percent to C$13.81.
Spot gold fell as much as 1.4 percent to a session low of $1,183.75 an ounce. Bullion retreated as global equities jumped on possible signs of progress in Greek debt talks, which curbed safe-haven demand for the metal.
Financials, the index's most heavily weighted sector, rose 1.1 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, rose 1.2 percent to C$77.77. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, gained 1.2 percent to C$53.76.
NeuLion (TSE:NLN) jumped 4.3 percent to C$1.46 after it signed a new, multi-year agreement with Tennis Channel to show more live matches on more devices. It’s an extension of an existing agreement between the digital video company and the 24-hour tennis programming network that both say led to growth in viewership and engagement.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) inched up 0.1 percent to 684.50 at 12:08 p.m. in Toronto.
In the U.S. market, shares advanced today on optimism that Greece will eventually reach a bailout deal with its creditors. The S&P 500 (INDEXSP:.INX) rose 0.8 percent to 2,127.55 at 11:44 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) added 0.8 percent to 18,162.82, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) rose 0.8 percent to 5,158.46. Most followed shares included Humana, Baxter, Pfizer, Fitbit, Micron Technology, Facebook, AMD, Williams, Cigna, and Carnival.