STOCK MARKETS — Toronto market suffers exhaustion at finish line

The Toronto Stock Exchange was fractionally lower in light trading during the report period ended July 30. Daily volumes were all in the 60-million-share range and the index traded in a narrow 53-point range before settling at 4,901.15 points at the close of trading, down 17.44 points from the week before.

The Canadian dollar was weaker against all the major foreign currencies in the past five trading days, closing at US72.80 cents, 11 basis points lower than July 23. The July 19 interest rate cut shows the Bank of Canada prefers to let the dollar slide back into the US72-73 cents range. The dollar was only marginally lower against the greenback and the Japanese yen, but fell substantially against the European currencies in the face of a tighter European money policy.

Gold was $1.10 higher on the London bullion markets, with a morning fix of US$385.50 per oz. on July 31. Platinum also clawed back to earlier levels, closing at US$399.50 per oz., and silver recovered slightly to a US$5.11-per-oz. fix after several dismal weeks.

The TSE gold and precious metals index lost 63.68 points to close at 10,757.32, a marginal change from the week before. The most active issue on the index was Bema Gold, which, at $5.20, was up 20 cents on a volume of 3 million shares. Placer Dome added 40 cents to close at $30.30, on 2.9 million trades, and TVX Gold was 5 cents lower at $9.95 with 1.4 million shares traded.

Barrick Resources was 5 cents better at $36.45, and newcomer Greenstone Resources fell 20 cents to $15.80.

Some of the more significant price moves in the golds included Agnico Eagle Mines, off $2.45 to $19.60, and Euro-Nevada Mining, down $2.05 to $28.10.

London Metal Exchange prices were firmer for most base metals, but nickel lost 7 cents on the week to close the July 31 ring at US$3.09 per lb. Copper was unchanged from July 24, and both zinc and lead recovered from a two-week slump; zinc closed at US46 cents and lead at US37 cents per lb.

The metals and minerals sub-index climbed 88.12 points (1.8%) to a close of 5,002.72 on July 30. Investors appeared unfazed over the nickel price as Diamond Fields Resources added $1.75 to close at $39.10, Inco put on $1.90 to close at $42.70, and Falconbridge picked up 35 cents to close at $28.60.

The most active of the base metal miners was Inmet Mining, down 10 cents to $9.60 with 3.2 million shares changing hands. The company announced a loss of $6.4 million for the six months ended June 30. Noranda was $1 better at $27.60, and Cameco was unchanged at $65.

In the loss column were Cominco, down 70 cents to $27.30, Teck B, off 25 cents to $27.20, and Rio Algom, 20 cents lower at $25.60.

The juniors were quiet this week, though Arequipa Resources was down 10 cents to $27.90; apparently some investors are tired of waiting for an even whiter knight than Barrick.

Bre-X Minerals fell 50 cents to close at $24.70, in spite of a new flood of analysts’ reports suggesting that the Busang deposit may ultimately prove to have 100 million oz. gold. Bresea Resources, the pride of Place Victoria, was off 50 cents to $14.75.

Another Montreal listing, Vior Mining, was 13 cents higher and traded 11.4 million shares to close at 65 cents. Two weeks before the stock was at 20 cents. In a statement to the Montreal Exchange, the company said it was unaware of any material facts contributing to the rise in the stock.

Affiliate Virginia Gold Mines was up 5 cents to $2.35, and has had considerable exploration success in the James Bay region of Quebec, suggesting that Vior may be benefitting from reflected glory.

On the TSE, BYG Natural Resources was 14 cents lower at 91 cents, even though the company had released news of several new deals in the Yukon. Heading the opposite way was Iamgold, which added 55 cents to close at $5.30.