STOCK MARKETS — TSE slides back as global worries continue — Mining stocks outpace broad market in race for the bottom

The Toronto Stock Exchange chalked up five losing sessions in a row between Nov. 5 and Nov. 11, finishing a dismal stretch at 6,786.52 points, about 2% lower for the trading period. Volumes were moderate, clustering around 100 million shares each day, suggesting investors were more indifferent than panicky.

The base metals and gold mining sectors were among the worst performers on the market, though they had the transportation and utilities stocks for company. The meltdown in Asian markets, which could depress industrial demand for bulk commodities, is seen by many market watchers as a drag on the resource and transportation sectors.

The Canadian dollar remained in the middle of the pack among the major Western currencies, sliding 44 basis points against the U.S. dollar to trade at US70.98 cents at noon on Nov. 12. Currency traders are loading up on the pound, which made strong gains when the Bank of England raised its principal interest rates and the Exchequer announced that the United Kingdom would not be joining the European currency system for another five years. The Japanese yen, meanwhile, was the major currency damaged most by the continuing slide in Asian-based equities.

Gold tested 12-year lows on the London bullion markets during the report period, its afternoon London fix of US$308.15 per oz. being the lowest since July 1985. That represented a $6.45 decline from the previous week. To add to the yellow metal’s woes, the London Bullion Market Association announced that its average daily turnover in October was 42 million oz., 22% higher than in September, mostly the result of traders dumping gold during the recent fall in price.

Platinum lost ground as well, falling $14 over the same period to finish at US$394 per oz., but palladium and silver both rallied modestly, with the former up $2 at US$212.50 and the latter up 10 cents at US$4.95.

The gold and precious minerals sub-group suffered another disastrous trading period, falling 7.7% to close at 6,925.08 for a new low. The big boys both fell hard — Barrick Gold shedding $1.75 to close at $26.95 and Placer Dome waving goodbye to $2.30 for a closing price of $19.40. The weak gold price was hard on the royalty companies, with Franco-Nevada Mining off $1.85 at $31 and sister Euro-Nevada Mining off $2.05 at $20.50. Mid-tier producers all lost ground, with Kinross Gold sliding 65 cents at $5, TVX Gold down 60 cents at $5.40, and Cambior off 70 cents at $11.20.

Among the smaller producers on the sub-index, Greenstone Resources was the most heavily traded, falling $1.20 to $10.45. Aurizon Mines, which recently announced a deal to buy the Casa Berardi mine, was unchanged at $1.04, and Richmont Mines was down 40 cents at $4.15.

Base metals suffered from market sentiment that sees weakness in the Asian stock markets as a bad sign for commodities. Nickel added 5 cents to finish the week at US$2.80 per lb. Aluminum was unchanged at US73 cents, but the other major base metals were all lower, with zinc the biggest loser at US53 cents, down 3 cents from a week before.

The metals and minerals index lost 4% of value, closing at 4,013.45.

Declines were general in the base metals sector. Inco shed $2.05 to close at $26.25, clocking in at just about half its 1996-1997 high of $51.45.

Falconbridge was lower as well, losing $1.85 to close at $18.75, and parent Noranda was down $1.10 at $23.90.