Signs that the credit market crisis may finally be unwinding buoyed markets in the U. S. over the March 25-31 trading session. With the companies hit hardest by the crisis beginning to see better financial positions, the Dow Jones Industrial Average gained close to 250 points to finish at 12,548.64. And while the NASDAQ Composite Index fell roughly 50 points to 2,279.1 for the period, it was rebounding at presstime with an 80-point gain.
Better news in the financial sector coincided with a rising U. S. dollar, but the stronger greenback hadn’t taken a toll on gold yet. The Amex Gold Bugs Index rose along with the yellow metal, which climbed to US$933.50 per oz. from US$926.75 per oz. for the period. The index gained roughly 8 points to 438.42.
The Dow Jones AIG Industrial Metals Index showed strength as well, climbing just over 10 points to 225.63. Its rise was aided by better prices for copper, aluminum, nickel, tin and lead. Higher prices for base metals made big-time producers Vale and Freeport-Mc-MoRan Copper & Gold the most actively traded miners for the period, with Vale gaining US$2.89 to close at US$36.64 and Freeport rising $7.46 to finish at US$96.22.
Coeur d’Alene Mines rounded out the top three most popular miners over the period as silver prices began to recover some of their lost momentum — climbing to US$17.99 per oz. from US$17.57. Coeur shares gained 16 to finish at US$4.04 apiece.
The bullish period for metal prices helped Rio Tinto grab the biggest gains in terms of dollars as its shares grew by US$16.43 to US$411.84 while strong potash prices and a bullish consensus on fertilizer’s price going forward kept Potash Corp. of Saskatchewan among the big winners. Its shares gained US$4.41 to US$155.21.
A 10 for one share split by Sociedad Quimica y Minera took the Santiago-based company’s share price down to US$23.50 from US$232.49 over the period. SQM produces fertilizers, iodine and lithium.
Word that Metallica Resources plans to merge with New Gold and Peak Gold helped the company gain 20% to finish at US$5.89 for the period. The merger will create a globally diversified intermediate gold producer with a market capitalization of roughly US$1.6 billion.
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