TSX Ends Higher As Hopes For Greek Deal Rises -- Canadian Commentary

(RTTNews) - Canadian stocks rebounded to end sharply higher on Monday, as most global equity markets made gains on news of progress in the Greek debt negotiations, with Athens submitting a new set of reforms to the eurozone group.

The uptick was led by gains in energy, financial, and information technology sectors, with almost all major indices ending in the green. Nevertheless, the optimism for a Greek deal has driven gold prices lower with investors ignoring the safe haven appeal of the precious metal. Almost all sectors of the main Canadian index ended in the green.

All major European markets ended firmly in positive territory on news of a possible deal in the Greek debt negotiations.

Markets in the United States also settled firmly in positive territory, with optimism for a Greek resolution providing a boost to the markets, coupled with the stronger than expected existing home sales data.

A report from the National Association of Realtors on Monday showed existing home sales in the U.S. increased more than anticipated in May, with sales jumping to its highest level in nearly six years.

Hopes of an agreement between Greece and its creditors later this week have greatly improved after Athens submitted a revised economic reform proposal early Monday. The Eurogroup has responded with optimism, suggesting that an end to a five-month long deadlock over releasing bailout aid to the cash-strapped country may be near.

Eurogroup President Jeroen Dijsselbloem Monday said the new proposals submitted by Greece were seen a 'positive step' in the path to reaching a deal with creditors and work will start immediately with the aim of reaching a final agreement later in the week.

Athens is meeting with its creditors in an effort to reach a settlement and avoid default, which analysts say will likely end in some kind of arrangement. While the meeting today did not result in a resolution, officials emerged optimistic that a deal could possibly be reached by the end of the week. Greece is scheduled to repay a bundled loan of Euro 1.5 billion to the International Monetary Fund on June 30.

The benchmark S&P/TSX Composite Index closed Monday at 14,790.48, up 137.36 points or 0.94 percent. The index scaled an intraday high of 14,827.40 and a low of 14,644.82.

On Friday, the index closed down 125.53 points or 0.85 percent, at 14,645.11. The index scaled an intraday high of 14,746.39 and a low of 14,584.43.

Crude oil futures ended higher as hopes of resolution to the Greek debt payment impasse brightened after eurozone leaders warmed up to Athens' new proposals submitted earlier today.

The Energy Index gained 1.01 percent, as U.S. crude oil futures for August delivery gathered $0.41 or 0.7 percent, to settle at $60.38 a barrel on the New York Mercantile Exchange Monday.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.89 percent, while Crescent Point Energy Corp. (CPG.TO) fell 0.56 percent and Encana Corp. (ECA.TO) dropped 1.95 percent

Enbridge Inc. (ENB.TO) jumped 2.57 percent, while Cenovus Energy (CVE.TO) fell 0.48 percent.

Gold futures ended lower with the precious metal losing some of its sheen as a safe haven investment as investors opted for the riskier equity assets on easing concerns over Greece's financial woes and the dollar trending higher.

The Gold Index shed 1.23 percent, with gold for August delivery dipping $0.10 to settle at $1,201.90 an ounce in electronic trade on the New York Mercantile Exchange Friday.

Among gold stocks, Goldcorp Inc. (G.TO) dropped 0.89 percent, Barrick Gold Corp. (ABX.TO) shed 2.13 percent, and Kinross Gold Corp. (K.TO) dived 0.36 percent. IAMGOLD Corp. (IMG.TO) surrendered 4.24 percent, while Eldorado Gold Corp. (ELD.TO) moved up 1.99 percent.

The Capped Materials Index inched up 0.03 percent, as Agrium Inc. (AGU.TO) added 1.74 percent and Agnico Eagle Mines Limited (AEM.TO) fell 2.23 percent. Franco-Nevada Corp. (FNV.TO) fell 0.63 percent, while Potash Corp. of Saskatchewan Inc. (POT.TO) gathered 1.10 percent.

The Diversified Metals & Mining Index dipped 0.01 percent, even as First Quantum Minerals Ltd. (FM.TO) gained 0.65 percent, Sherritt International (S.TO) slid 2.69 percent, and Teck Resources (TCK.B.TO) dropped 0.22 percent.

The heavyweight Financial Index added 0.78 percent, as Royal Bank of Canada (RY.TO) gained 0.76 percent, National Bank of Canada (NA.TO) moved up 0.34 percent, and Bank of Montreal (BMO.TO) gathered 0.79 percent.

Bank of Nova Scotia (BNS.TO) jumped 1.23 percent, while Canadian Imperial Bank of Commerce (CM.TO) advanced 0.99 percent.

Toronto-Dominion Bank (TD.TO) gained 0.92 percent after revealing its Commercial Real Estate Group closed more than 240 transactions totaling $6.3 billion in commitments in 2014.

The Capped Health Care Index gathered 1.27 percent as Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 2.22 percent, Extendicare Inc. (EXE.TO) added 1.33 percent, Catamaran Corp. (CCT.TO) moved up 0.25 percent, and Concordia Healthcare Corp. (CXR.TO) advanced 2.16 percent.

The Capped Industrials Index moved up 0.79 percent, as Bombardier Inc. (BBD-A.TO) gained 2.46 percent and Finning International Inc. (FTT.TO) gained 1.36 percent. Canadian Pacific Railway Limited (CP.TO) moved up 0.87 percent, while Canadian National Railway Company (CNR.TO) dipped 0.16 percent.

The Information Technology Index jumped 2.17 percent, as BlackBerry Inc. (BB.TO) jumped 3.94 percent, Sierra Wireless, Inc. (SW.TO) gained 0.87 percent, and Descartes Systems Group Inc. (DSG.TO) moved up 2.31 percent.

The Capped Telecommunication Index climbed 1.97 percent, as TELUS Corp. (T.TO) moved up 2.43 percent and Rogers Communications Inc. (RCI.B.TO) gathered 2.00 percent. Both companies are reportedly pursuing an acquisition of wireless telecommunications provider Mobilicity.

BCE Inc. (BCE.TO) added 1.48 percent, while Manitoba Telecom Services (MBT.TO) advanced 3.43 percent.

Wi-Lan (WIN.TO) gained 4.10 percent, after its Back Bay Medical subsidiary entered into a settlement and license agreement with Microvention.

Intertain Group Limited (IT.TO) gained 1.10 percent, after having acquired rights to the latest bingo software source code from Parlay and the domain name Bingo.ca, for approximately C$2.8 million.

NeuLion, Inc. (NLN.TO) jumped 5 percent, after signing a new multi-year agreement with Tennis Channel.

On the economic front, existing home sales in the U.S. increased more than expected in May, with sales jumping to their highest level in nearly six years, a report from the National Association of Realtors showed Monday. Existing home sales in May surged 5.1 percent to an annual rate of 5.35 million from an upwardly revised 5.09 million in April. Economists expected sales to climb to an annual rate of 5.25 million from the 5.04 million originally reported for the previous month.

The Bank of Japan maintained its upbeat view on the economy saying the moderate recovery is expected to continue. In its monthly report on Monday, the BoJ said exports are expected to increase moderately, albeit with some fluctuations, mainly against the background of the recovery in overseas economies.