U.S. Markets March 20-26

Takeover speculation in the U.S. auto sector and talk that General Motors could team up with others to buy Chrysler drove the Dow Jones up 242.90 points to 12,469.07 during the March 20-26 trading session. The broad market S&P 500 Index rose 35.44 points to 1,437.5.

On the mining front, investors were reassured by BHP Billiton chief executive officer Chip Goodyear, who said he is confident that the price of copper, nickel, and other metals will remain high for several decades as demand from China and India climbs.

Buoyed by those comments, shares of BHP rose US$3.24 to US$48.73 in active trading. Among other base metal stocks, Rio Tinto gained US$12.61 to finish the week at US$228.10, while Teck Cominco class B shares rose US$5.86 to US$71.61.

“I’m excited about what we’ll see over the next several decades as 2.5 billion people in China and India, and other parts of the developing world enter the world economy,” Goodyear told Bloomberg news service in Santiago, Chile.

“Is China and India the next reason for a multi-decade increase in commodity prices? We’re positive about that.”

These comments come after Citigroup, the biggest U.S. bank, raised its 2007 nickel forecast and boosted its first-half copper forecast this month and said a “super cycle” will keep prices elevated as supplies lag behind demand.

The price of nickel has soared 28% this year as China, the world’s largest user of the metal, expanded its stainless steel industry.

Not surprisingly Companhia Vale do Rio Doce, the Brazilian company that acquired Canadian nickel mining giant Inco last year, was among the week’s volume leaders, rising US$1.15 to US$37.50.

The stock rallied as rival Xstrata extended its acquisition spree, launching a $4.6-billion friendly takeover bid for LionOre Mining International, a Toronto-based company, which has nickel mining operations in Western Australia, Botswana, and South Africa.

In other news, Freeport-McMoRan Copper & Gold sold a US$2.5-billion mandatory convertible offering, easily beating the company’s original target of US$1 billion.

Freeport, the most actively traded stock during the session, rose US$2.26 to US$64.70.

U.S. greatest percentage change

		VOLUME(000s)	HIGH	LOW	CLOSE		CHANGE
Michigan Gold*	MGGV	1122	0.007	0.005	0.007	+	75.0
Idaho Gen Mn*	GMO	7302	4.40	2.69	3.89	+	42.4
Caledonia Mng*	CALVF	8944	0.129	0.093	0.126	+	32.6
Tara Gold*	TRGD	3263	1.34	0.97	1.23	+	25.5
Anooraq Res*	ANO	5954	1.76	1.48	1.69	+	18.1
Shoshone Silv*	SHSH	36	0.35	0.25	0.30	+	17.6
Northw Min Vt*	NWTMF	735	0.619	0.51	0.60	+	17.6
Rubicon Mnls*	RBY	2112	1.40	1.18	1.38	+	16.9
Golden Star*	GSS	23124	4.63	3.91	4.56	+	16.3
OM Group*	OMG	3973	46.15	40.40	46.05	+	13.5
HuntMountain*	HNTM	63	0.53	0.39	0.39	–	35.0
Starfield Res*	SRFDF	1470	0.249	0.205	0.205	–	15.2
Diamond Discv*	DMDD	905	0.007	0.005	0.006	–	14.2
Commerce Grp*	CGCO	14	0.12	0.095	0.095	–	13.6
Sao Luis Mng*	SAOL	96	0.31	0.28	0.28	–	9.6
Liberty Star*	LBTS	1947	0.65	0.59	0.59	–	9.2
Pine Valley M*	PVMCF	353	0.041	0.04	0.041	–	8.8
Claude Res*	CGR	1937	1.62	1.41	1.451	–	8.7
Little Squaw*	LITS	71	1.20	1.05	1.10	–	8.3
Pac Gold*	PCFG	504	0.20	0.185	0.185	–	7.5

U.S. greatest value change

		VOLUME	CLOSE		CHANGE
Rio Tinto*	RTP	1988700	228.10	+	12.61
Teck Comin B*	TCK	1539900	71.61	+	5.86
OM Group*	OMG	3973200	46.05	+	5.50
Cleveland-Cli*	CLF	4422931	64.40	+	5.08
Potash C Sask*	POT	4067369	159.00	+	4.05
Soc Quim&M Ch*	SQM	113900	141.74	+	3.48
BHP Billi-BHP*	BHP	16892887	48.73	+	3.24
BHP Billi-BBL*	BBL	560300	44.79	+	2.90
Peabody Enrgy*	BTU	21516140	41.30	+	2.89
ASA (Bermuda)*	ASA	339800	64.35	+	2.64
Mines Managem*	MGN	183000	4.96	–	0.22
HuntMountain*	HNTM	63400	0.39	–	0.21
Claude Res*	CGR	1936600	1.451	–	0.139
Little Squaw*	LITS	71344	1.10	–	0.10
Coral Gold*	CGREF	15514	2.478	–	0.082
Gold Reserve*	GRZ	786500	4.40	–	0.08
Colombia Gldf*	CGDF	497590	1.22	–	0.08
Great Basin G*	GBN	1426800	2.05	–	0.06
Liberty Star*	LBTS	1946932	0.59	–	0.06
Global Gold*	GBGD	17400	0.95	–	0.06

U.S. most active issues

< td>3.91

		VOLUME(000s)	HIGH	LOW	CLOSE		CHANGE
Freeport McMo*	FCX	114238	65.10	60.86	64.70	+	2.26
CVRD*	RIO	46270	37.64	35.74	37.60	+	1.15
Goldcorp*	GG	41532	25.24	23.90	25.22	+	1.04
Alcoa*	AA	41057	34.20	33.37	34.17	+	0.21
DRDGOLD*	DROOY	40577	0.73	0.60	0.66	+	0.045
Newmont Mng*	NEM	35349	44.28	42.92	43.73	+	0.49
Coeur d Alene*	CDE	34959	4.27	3.93	4.25	+	0.30
StreetTr Gold*	GLD	23678	66.13	64.90	65.84	+	1.10
Barrick Gold*	ABX	23236	29.41	28.57	29.05	+	0.59
Golden Star*	GSS	23124	4.63	4.56	+	0.64