STOCK MARKETS — Base metal miners still tugging at leash

The Toronto Stock Exchange continued strong in the past week, helped along by the base metal sector. The TSE 300 composite index had four more record-closing levels in the 5-day report period ended Nov. 19, adding 98.58 points to finish at 5,905.55, up 1.7% in value. The base metals outpaced the market, but the golds gave back part of last week’s strong gains.

Trading was heavy, with daily volumes in excess of 100 million shares on all but one trading day. Transportation and banking issues joined the metal miners to lead a market that is clearly benefitting from lower interest rates. Speaking of which, the Canadian dollar slid against most major foreign currencies during the period, as the market reacted to the overbought condition of the past three weeks. The loony was 48 basis points lower against the U.S. greenback, at US74.50 cents, and the Bank of Canada seems to be happy to let it — and the 3.25% overnight rate — stay where they are.

The precious metal markets were cooler, with gold off $3.90 over the period Nov. 13-20, for a fix of US$378.60 per oz. on the morning of Nov. 20.

Platinum fell $4.50 to US$383.50 per oz., and silver finished essentially unchanged at US$4.90.

The TSE gold and precious minerals sub-index closed 199.17 points lower at 11,496.05 on Nov. 19, for a loss of 1.7%. The volume leader was Kinross Gold, which was 35 cents lower at $10.10. The Cronos and Hyperion of the gold index were both lower in heavy trading: Barrick Gold fell $1.15 to $36.70 and Placer Dome slipped 60 cents to $34.65. Other heavily traded golds were TVX Gold, off 30 cents to $10.15, Bema Gold off 35 cents to $7.45, and Echo Bay Mines, off 95 cents to $9.80. The gainers included Cambior, which added 75 cents to close at $21.10, and Agnico Eagle Mines, which was 20 cents higher at $19.25.

London base metal trading provided plenty of excitement this week, with copper staging a rally and nickel taking a beating. Lower London Metal Exchange warehouse levels of copper brought the red metal to US$1.07 per lb.

by Nov. 20, a gain of 10 cents from the previous week. Nickel went for a 15 cents-per-lb. free fall on Nov. 18, recovering slightly on Nov. 20 to US$3.06 — a net loss of 17 cents from the previous week. Lead experienced some wild swings before settling at US32 cents, down 1 cents, and aluminum, the sad sack of the month, was up 3 cents to 67 cents per lb. Only zinc passed a quiet week, adding 1 cents to finish at US48 cents.

The major base metal stocks were all healthier this week, as the metals and minerals sub-index rose 131.04 points, or 2.4%, to finish the week at 5,420.38. Inco rose 65 cents to close at $44.80 on a volume of 7.3 million shares; Noranda tacked on $1.10 to close at $31.40; Rio Algom was up $1.35 at $30.60; and Falconbridge was 80 cents higher at $31.05.

Teck, nominally on the gold index, but just as sensitive to base metals, added $1.70 to close at $30.95, while subsidiary Cominco was 75 cents higher at $32.85.

On the junior board, Bre-X Minerals was up and down like a Duchess’s weight, trading between $20.15 and $23.30 before settling at $22.25, 90 cents lower than in the previous week. Speculation surrounding the status of the company’s Busang property continued, fed by reports of a visit to Indonesia by Barrick Gold Chairman Peter Munk, as the 9.9-million trading volume showed.

Corriente Resources fell 35 cents to $7.60, though it had traded as high as $11. The company released drill results from its Taca-Taca copper-gold project in the Argentine Andes with grades of 0.2-0.4% copper in the primary zone and 1.3% copper in the enriched zone, plus trace amounts of gold.

In Montreal, Melkior Resources was 55 cents higher at $1.45, though no new information had been released by the company. Melkior is active in the Shaba copper belt in Zaire. Another company with African connections, Orezone Resources, was off 35 cents to close at 90 cents.