2/21/2012 11:18 AM ET
(RTTNews) - Canadian stocks advanced to a two-week high Tuesday morning as commodities were moving higher after euro zone finance ministers gave a green signal to a second rescue package for Greece.
Euro zone Finance Ministers early Tuesday gave green signal to a second rescue package for Greece, unlocking a 130 billion euros bailout money for the cash-strapped euro member. The new bailout money would leave Athens with sufficient funds to repay a 14.5 billion euros bond due on March 20.
The S&P/TSX Composite Index gained 138.64 points or 1.11 percent to 12,596.94, level not seen since February 06.
The price of crude oil oil moved up near a 10-month high Tuesday morning as risk appetite improved after euro zone finance ministers gave a green signal to a second rescue package for Greece. Light Sweet Crude Oil (WTI) futures for April delivery, the most actively traded contract, gained $1.33 to $104.93 a barrel.
In the oil patch, Flint Energy Services (FES.TO) soared over 65 percent to C$24.79 after it said it would be acquired by URS Corp. for C$25.00 per share in cash or C$1.25 billion.
Petrominerales (PMG.TO) gained close to 5 percent, while Niko Resources (NKO.TO) was adding nearly 3 percent.
The price of gold moved up to a 3-month high, with gold for April delivery adding $30.00 to $1,755.90 an ounce.
In the gold space, Alamos Gold Inc. (AGI.TO) gained over 6 percent. Royal Gold and Barrick Gold (ABX.TO) moved up over 2 percent each.
Smart phone maker Research In Motion (RIM.TO) announced that the new BlackBerry PlayBook OS 2.0 will be released for download today. According to the company, BlackBerry PlayBook OS 2.0 delivers an enhanced tablet experience and allows user to use the BlackBerry PlayBook in new ways throughout the day - at work and at play. The stock moved up over 1 percent.
Meanwhile, distribution utility holding company Fortis Inc. (FTS.TO) eased 0.50 percent after it said it would acquire U.S.-based CH Energy Group, Inc. (CHG) for $65 per share in cash aggregating about $1.5 billion.
In economic news, Statistics Canada said wholesale sales rose 0.9 percent in December to C$49.6 billion, mainly as a result of higher sales in the motor vehicle and parts. On an annual basis, wholesale sales rose to C$577 billion in 2011, up 7.4 percent from the previous year.
Separately, the agency said Canadian retail sales edged down in December, in line with estimates. However in volume terms retails ales were stable. On an annual basis, retailers sold $454.1 billion worth of goods and services in 2011, up 3.6 percent from 2010. Retail sales in volume terms rose 1.6 percent.
by RTT Staff Writer
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