Big boys dominate US

‘Bigger was better’ for resource companies trading on U.S. markets over the report period Nov. 1-7, with large coal and copper companies hogging most of the action and share-price increases. North America’s top three gold companies got plenty of attention too, as investors await the outcome of a merger proposal which would create the largest gold company in the world. The Dow Jones Industrial Average and the broad-based S&P 500 posted gains. DJIA was up 142.16 points to close at 10,586.23, while the S&P was ahead 15.8 points to close at 1,222.81.

Placer Dome was once again the most active resource stock on U.S. markets as investors waited for some signs of life and a strategic response to Barrick’s proposed takeover bid. Instead, allegations of insider trading grabbed the headlines, which didn’t help Placer shares. They fell US25 each, to close at US$19.70 over the session.

Barrick’s bold takeover attempt of Placer was given a mixed reception by investors, who seem to either love it or hate it. Critics worry that Barrick is paying too much for marginal assets (Nevada properties excluded, of course), while fans think that if the gold industry was a ‘Survivor-type’ reality show, Barrick has already outwitted and outsmarted its rivals and deserves top billing.

Gold giant Newmont Mining is keeping its wits and top billing over rivals Barrick and Placer, at least for the time being. The company’s shares got a boost too, up US41 at US$43.01.

Rio Tinto is one of the world’s largest mining companies, and its diversified portfolio of assets continues to impress investors. The company’s shares gained US$5.05 to close at US$157.67.

Aluminum companies also found favour with investors, with Alcan up US$3.71 to US$35.40, and Alcoa up US$1.80 to US$25.94.