TORONTO STOCK EXCHANGE (March 24, 2008)

Any gains over the March 11-17 trading period were shortlived after many Canadian stocks retreated on news of a fire sale south of the border — JPMorgan Chase agreed to buy Bear Stearns for less than one-tenth its market value.

The TSX Composite Index rallied during the first half of the period, peaking at 13,443.5 points on March 13. Investors couldn’t ignore the dramatic Bear Stearns fallout though, which caused the index to tumble to 12,952.15 — down 52.94 points from the start of the period.

The Capped Metals and Mining Index reacted similarly — closing only 3.03 points higher at 798.24 after having reached 833.45 on March 13.

All the uncertainty was good for spot gold, which surged US$50.50, passing the US$1,000-per-oz. milestone and closing the period at US$1,023.50 per oz.

As a result, the gold stocks were among the most actively traded with many hitting new highs.

Kinross Gold topped the list with 49.2 million shares changing hands, up $1.84 to $25.92, followed by Yamana Gold with 35.8 million shares traded, up $1.70 to $19.07. Eldorado Gold, Goldcorp and Barrick Gold shares were also on the most active list.

Shares in the world’s largest potash producer, Potash Corp. of Saskatchewan, saw the most dollar-value growth, up $11.82 to $154.45 per share, while the rest of the value-change list was dominated by gold companies.

Agnico-Eagle Mines hit a new all-time high of $82.80 per share, closing the period $9.52 higher at $79.31. Newmont Mining grew by $4.16 to close at $53.37, Goldcorp hit a new high of $45.89 per share, rising $3.28 overall to close at $44.08. Barrick shares saw a boost of $3.19 to $52.19. Central Gold-Trust, which touched a new high of $40 per share, added $2.89 to close at $38.93.

On the losing side, Altius Minerals fell the most, sinking $2.30 to $14.49 per share. Altius reported third-quarter net earnings of $604,000 compared with $27.3 million for the three months ended Jan. 31, 2007.

Aurora Energy Resources and its 42.3%-stakeholder Fronteer Development Group saw their stock prices drop as a proposal for a three-year moratorium on uranium mining and milling on Labrador Inuit lands passed the first reading. The moratorium could affect development of Aurora’s Michelin uranium project.

A $6-million private placement put Kimber Resources on the radar screen. The company closed the 75-per-share financing only to see its stock rise 55.3% over the period, closing at $1.60 each. Kimber plans to use the funds for exploration at its Mexican properties.

Golden Queen Mining shares climbed nearly 36% to $1.29 per share on no particular news.