Golds make gains as TSE dives

The Toronto Stock Exchange treated investors to another wild ride over the report period March 7-13, as another blue Monday hit the telecom stocks. The TSE 300 composite index sank 205 points on March 12 and, over the five trading days, fell 246.10 points to close at 7,959.46 for a loss of 3% of value.

Gold prices were up, briefly, and lease rates spiked sharply, on March 12, as the London bullion fix reached US$272.50 per oz., its highest this year. The yellow metal settled back to US$267.45 on March 13, but that was still enough for a gain of US$5.90 on the five trading days. Actual gold trading was relatively thin, partly in anticipation of the Bank of England auction on March 14; that shook out at US$266 per oz., with bids for slightly more than twice the gold on offer. The weak auction result brought the price back to US$263.85 in the London afternoon fix, and, at presstime, trading in the U.S. and Asia had pulled it further still, to the US$262-per-oz. range.

The gold issues climbed 142.17 points to close at 4,557.66, an increase of 3.2% over the report period. Heavy trading volumes suggested some large investors were moving back into the golds as other sectors fell back. Placer Dome was the volume leader, with 11.6 million shares traded as the price rose $1.34 to $15.76. Barrick Gold was not far behind, with 10.2 million shares moving in Toronto and a further 12.2 million traded on New York, but it slid 3 to $25.10. Kinross Gold added 8 to close at 90 as 9.5 million shares changed hands.

The mid-tier golds were generally higher. Agnico-Eagle Mines continued its rise, adding $1.13 to finish at $11.20; Goldcorp was up 41 at $10.70, with 1.7 million shares traded; Meridian Gold rose 47 to $10.87; and Echo Bay Mines added a dime for a close of $1.40.

Prices for the white goods recovered slightly, with palladium up US$25 at US$795 per oz. and platinum US$6 higher at US$592 per oz. The market was still reacting to the previous week’s slides, though, with North American Palladium falling $1.40 to $12.58.

Despite adverse year-end numbers, Pan American Silver was 1 higher at $4.66 and TVX Gold added 10 to close at $2.40. Off the index, Aurizon Mines was 3 higher at 62, Campbell Resources was up 12 at $1, and River Gold Mines added 25 to finish at $1.20.

Base metal prices were weaker on the London Metal Exchange, with nickel down US7 to US$2.73 per lb. and copper off 3 at US$79 per lb. The Toronto base metals index fell 29.22 points over the report period to close at 4,257.43, though it still made a 52-week high of 4,394.18 on March 8.

Alcan Aluminium was the most heavily traded of the big base metal issues, falling 9 to close at $59.65 on a volume of 4.2 million shares. Noranda slid 45 to close at $16.80, with 3.4 million shares moving. The big nickel miners both slipped back, with Inco down 50 at $28.10 and Falconbridge down 20 at $17.70.