Despite growing nervousness about the long-term effects of high oil prices on the broader economy, investors continued their love-in with commodities over the August 9-15 report period. Resource stocks listed on U.S. markets continued to make gains, and the generally bullish mood of investors was reflected in the S&P 500 Index, which jumped 10.74 points at 1,233.68 over the trading session.
Investors pushed up the share price of diversified miner Rio Tinto by another US$7.62, with the stock topping US$150 after announcing impressive financial results for the second quarter of this year. Like most commodity producers, Rio Tinto’s financial performance is largely fuelled by China’s booming economy.
While coal and energy companies continued to attract investor attention, potash and fertilizer producer Potash Corp. of Saskatchewan saw its share price climb by US$5.51 to US$114.51 over the trading session. Aluminum producer Alcoa, the most active resource stock, posted a modest gain of US$1.20 at US$29.24.
Newmont Mining was the most active senior gold producer again this session, up US$2.10 at US$41.06 on the back of steady gold prices.
Placer Dome continued its rebound this session, with a US75 gain at US$15.45. The company has some large gold-copper projects on its plate and is expected to make a decision on their development by year-end.
Freeport-McMoRan Copper & Gold was ahead US$2.29 to US$43.30 as investors digested dramatically improved operating results from the company’s Indonesian copper-gold operations.
Strong copper prices pushed shares of Phelps Dodge to a new high of US$114.52, for a gain of US$4.85 over the previous session.
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