Cooler winds chill Wall Street

TORONTO STOCK EXCHANGE

The balmy summer winds that propelled resource stocks to new highs are losing momentum as fall approaches, and concerns grow about rising energy prices and their potential to curtail economic growth. Alan Greenspan’s comments about global economic activity being “heavily influenced” by capital gains on assets (namely houses) didn’t help either, particularly after storms wreaked havoc on thousands of American homeowners, many carrying heavy debt-loads and mortgages.

Resources companies, particularly gold stocks, continued to shed recent gains over the Aug. 23-29 report period. The broad-based S&P 500 Index also lost ground, off 9.45 points at 1,212.28 over the trading session. Even aluminum producer Alcoa, the most active trader over the session, slipped US88 to US$27.48 after weeks of steady gains.

Gold producers all took a hit, led by Newmont Mining, the most active gold stock on U.S. markets over the report period. The company’s shares were off US88 at US$39.29. Barrick Gold shed US14 at US$26.14, while Placer Dome lost US42 at US$14.35. Energy companies seem to have picked up the gains shed by gold producers. Royal Gold once again bucked the trend, posting a US69-gain to US$23.21 after reporting impressive results for its 2005 fiscal year.

Silver producer Coeur d’Alene Mines lost some luster as its shares slid US38 to US$3.50.

The biggest value gainer was Sociedad Quimca Y Minera, a world leader in the specialty fertilizer, iodine and lithium business. The Chilean company mines most of its feedstock in the bone-dry Atacama desert. The company’s shares soared US$5.41 to US$117.81.

Fording Canadian Coal Trust gained another US$1.70 to US$116.50 over the trading session on the strength of stellar operating results and a strong outlook for the coming year.

Copper producers were investors’ darlings for most of the summer, but the sentiment has softened somewhat, and remains edgy after recent erratic trading patterns. Phelps Dodge lost $1.85 to $106.26, while Freeport McMoRan Copper & Gold slipped 64 at $40.80.

On the junior scene, Dallas-based Uranium Resources posted a 26% gain to 80 while would-be Minnesota miner Polymet Mining rose 15% to 88 over the session.