Toronto Stock Exchange August 21-27

Reports that the U.S. economy is slowing took some of the steam out of a rebounding TSX Composite Index during the Aug. 21-27 trading period.

The index still managed to finish 84.23 points higher at 12,632.68, but reports that unsold homes in the U.S. were at a 16-year high fed worries that a slower economy south of the border could cut demand for Canadian resources.

On the positive side, weeks of drought on the mergers-and-acquisitions front came to an end with U.S. Steel’s offer to buy Stelco for US$1.1 billion. The announcement not only lifted Stelco stock by 55% over the period, but also pushed the Canadian dollar higher as the sum would be paid in Canadian funds.

The mining sector rebounded during the session, led by the gold sector’s return to favour in the eyes of investors. Global Gold Index tracked the price of the yellow metal higher. The index was up nearly 3% to 260.21, while the price of gold climbed 1% or US$7.50 to finish at US$667 per oz.

The Capped Metals and Mining Index also made gains, climbing 59.71 points to 789.41 on the back of stronger copper, nickel and lead prices. Tin and zinc prices, however, fell slightly, with tin dropping to US$6.47 per lb. and zinc to US$1.40 per lb.

Zinc producer Breakwater Resources, with its nearly 420 million shares outstanding, was the period’s most actively traded miner. The Toronto-based company finished the week 25 higher at $2.75 on roughly 25 million shares traded.

Uranium pure-play Paladin Resources followed, with 22 million shares traded after it began to recover from the thumping it and other uranium stocks have been taking. The Perth, Australia-based company gained 41 to finish at $5.68.

After heavily punishing Khan Resources for news that the licence for part of its Dornod uranium project, in Mongolia, had been declared invalid by the government, the market thought kinder of the uranium junior and lifted its stock price by 41% to $1.88. The upward movement was the period’s largest by percentage. The turn for the better came after the company said discussions with the government clarified that the licence has not yet been declared invalid, but is subject to review and may be deemed invalid in the future.

Southwestern Resources was the period’s biggest loser by percentage after a review by the company and an independent consultant said its Boka project drill results had been doctored. The company lost 23% of its share price to finish at $1.70.

Southwestern is taking legal action against its former chief executive and qualified person, John Paterson, for fraud, breach of fiduciary, statutory and contractual duties and insider trading, seeking to recover all damages and losses.

TSX most active issues

		VOLUME(000s)	HIGH	LOW	CLOSE	CHANGE
Breakwater Res	BWR	24873	2.89	2.44	2.75	+0.25
Paladin Res	PDN	22056	5.76	5.05	5.68	+0.41
Redcorp Vent	RDV	19703	0.28	0.25	0.265	-0.015
Goldcorp	G	18490	24.84	22.59	24.18	+1.38
Eastern Platin	ELR	17851	2.21	1.98	2.13	+0.06
Equinox Minls	EQN	15666	3.65	3.12	3.45	+0.30
Kinross Gold	K	15419	12.70	11.92	12.09	+0.04
Constel Copper	CCU	14884	1.17	1.05	1.09	-0.01
Yamana Gold	YRI	11321	11.03	10.42	10.79	+0.31
Teck Comin B	TCKB	11182	45.77	40.50	44.89	+3.75

TSX greatest percentage change

		VOLUME(000s)	HIGH	LOW	CLOSE	CHANGE
Khan Res	KRI	9674	1.98	1.06	1.88	+41.3
Africo Res	ARL	201	1.50	0.82	1.21	+35.9
Mirabela Nickl	MNB	4752	4.19	3.03	4.05	+34.5
Grande Cache C	GCE	4537	1.06	0.75	1.00	+31.5
Centerra Gold	CG	939	7.10	5.14	6.82	+30.1
Energy Fuels	EFR	2312	2.07	1.51	2.01	+28.8
Stornoway Diam	SWY	1713	0.89	0.67	0.84	+25.3
Centamin Egypt	CEE	7110	1.15	0.91	1.15	+25.0
Mundoro Mng	MUN	684	0.79	0.59	0.75	+25.0
South Am Silvr	SAC	951	0.90	0.70	0.90	+23.2
Southwstrn Res	SWG	1378	2.23	1.69	1.70	-23.0
Sierra Minls	SIM	17	0.32	0.275	0.28	-20.0
New Gold wt	NGD_T	36	0.12	0.095	0.12	-20.0
Alexco Res	AXR	919	4.47	3.11	3.60	-18.5
Atlanta Gold	ATG	32	0.77	0.65	0.75	-11.7
Gateway Gold	GTQ	210	0.75	0.60	0.61	-11.5
Peregrine Diam	PGD	81	1.35	1.05	1.20	-11.1
Royal Gold	RGL	28	31.00	28.08	28.08	-10.4
Glencairn Gold	GGG	3403	0.20	0.175	0.175	-10.2
Glencairn G wt	GGG_T	71	0.05	0.035	0.045	-10.0

TSX greatest value change

		VOLUME	CLOSE	CHANGE
Potash Cp Sask	POT	4504001	90.36	+6.74
Inmet Mining	IMN	1358300	83.15	+5.55
Agrium	AGU	2685268	47.02	+5.35
First Quantum	FM	1905797	82.20	+4.94
Labdr I-Ore Ro	LIF_U	326022	35.47	+4.62
Fording C C T	FDG_U	2556489	34.51	+4.26
Teck Comin B	TCKB	11182327	44.89	+3.75
FNX Mining	FNX	4363327	28.70	+3.60
Major Drilling	MDI	286708	44.05	+2.98
Alcan	AL	6185070	103.25	+2.77
Royal Gold	RGL	28228	28.08	-3.27
Alexco Res	AXR	918891	3.60	-0.82
Dynasty Met&Mn	DMM	371264	7.05	-0.78
Platmin	PPN	67326	7.04	-0.73
Minefinders	MFL	895585	9.19	-0.52
Southwstrn Res	SWG	1377922	1.70	-0.51
Tanz Roy Exp	TNX	431571	5.23	-0.25
Detour Gold	DGC	217450	6.16	-0.24
Metallica Res	MR	1808638	3.75	-0.22
Marathon PGM	MAR	11950	5.30	-0.21