TSX up for The day, down for The week

Canada’s benchmark stock index dipped 1.1% in a week that saw global markets experience their worst one-day losses so far this year as a new Greek debt drama played out.

The S&P/TSX composite index started regaining ground after Tuesday’s big losses and it closed in positive territory for the third straight day on Friday at 12,503.62, a gain of 41.69 points or 0.33%, on the day. Nine of its 10 sub-indexes advanced, led by consumer goods, up 5.28%, and technology, which rose 1.20%.

While the uncertainty in Greece was supposed to have ended when a sufficiency of investors signed on to a voluntary debt swap ahead of Thursday night’s deadline, it appears the country may still be considered to be in default.

“First, Fitch Ratings downgraded Greece to restricted default. Second, Greece invoked the collective action clauses to force bondholders under Greek law who had held out to tender their bonds to the offer. Because of this move, which means the swap is no longer voluntary for everyone, the International Swaps and Derivatives Association ruled this to be a credit event. While this triggers credit default swaps, the total exposure is only $3.2 billion,” said analyst Colin Cieszynski of CMC Markets.

“Markets have barely moved since this announcement, indicating that it has long been expected and already priced into markets. This highlights the advantages of a managed bankruptcy like this or the two in the auto sector in 2009, over the uncontrolled bankruptcy of Lehman Brothers in 2008 which sparked a major financial crisis.”

The price of crude oil rose US82¢ to US$107.40 a barrel on Friday, while gold gained US$12.80 to US$1,711.50 a barrel.

The Canadian dollar erased most of its earlier gains and ended the day at US$1.0092, up just two basis points.

Market gains came Friday after the U.S. Department of Labor reported better-thanexpected job gains in February, even as the unemployment rate remained unchanged.

“The jobs report was solid, but not spectacular,” James Mcdonald, chief investment strategist at Northern Trust Corp. in Chicago, told Bloomberg.

Canada’s employment report from Statistics Canada on Friday was less optimistic: the unemployment rate fell to 7.4% in February due to people leaving the job market. The economy shed 2,800 jobs last month.

The Dow Jones industrial average rose 14.08 points, or 0.11%, to 12,922.02 on Friday, while the Nasdaq composite index gained 17.92 points, or 0.60%, to 2,988.34.

Canada’s junior Venture exchange rose 15.47 points, or 0.95%, to 1,649.81.