STOCK MARKETS — Gold’s slide doesn’t faze TSE

Seven consecutive winning days pushed the Toronto Stock Exchange’s composite 300 index beyond the 6,100 mark for the first time ever during the Jan. 15-21 trading period. The index hit record highs on each of the first three days of the trading period.

Predictably, profit-taking later led the index down a few dozen points to close at 6,075.98, though, for the week, it was up 21.12 points (0.35%).

The Canadian dollar continued to gain strength, climbing almost half a cent to US74.89 cents. It also beat up on the major European currencies, especially the mighty Swiss franc, against which it posted a gain of more than 3%.

There was, however, no good news in gold trading; indeed, there would seem to be no end in sight to the yellow metal’s precipitous drop, which began late last year.

Over the report period, gold closed at US$350.10 per oz., down $2.35.

Platinum, which has been falling with gold for the past few months, dropped $2.50 to close at US$356.50 per oz., while silver posted a rare gain of 5 cents, bringing it to US$4.70 per oz.

The TSE’s gold and precious metals sub-index escaped the effects of gold’s fall, gaining 164.93 (1.6%) to close at 10,777.35.

The Busang gold saga lumbered on, with no resolution in sight, as Bre-X Minerals lost 75 cents to close at $22.60, Barrick Gold gained 70 cents to close at $36.15 and Placer Dome climbed 20 cents to reach $28.30.

Meanwhile, major Bre-X shareholder Bresea Resources received a modest boost after analysts labelled the issue undervalued. The stock gained 20 cents, to close at $11.40, with more than 3 million shares trading.

Central Asia Goldfields saw its share price rise by 50%, to $1.50 from $1, after the first gold was shipped from the Kazakstani project it shares with Kazakstan Goldfields. Central Asia is also exploring projects in the former Soviet republic, in areas where the Soviets had delineated some large gold resources.

Montreal-listed JAG Mines lost 26% of its share value, falling to $1 from $1.35. The company is looking at ways to mine gold from tailings deposited in the Ottawa River by the Royal Canadian Mint.

Meanwhile, new results from the Stenpad property in Ghana have boosted the shares of co-owner Golden Rule Resources. The issue traded to the tune of $50 million, gaining $3.50 to close at $10.90 after mining analysts gave the project glowing reviews.

The TSE’s metals and minerals sub-index was steady over the period, closing down just 7.38 points (0.13%) at 5533.05.

Mineral Resources has made a takeover offer to the shareholders of Anvil Range Mining of three Mineral shares for every four Anvil Range shares. Anvil Range was recently forced to shut down its Faro zinc operations in the Yukon, owing to production problems and a weak zinc price. The offer helped Mineral Resources top the most-traded list at the TSE during the period at just over 11 million shares traded. Mineral’s share price gained just a penny, however, closing at 8 cents.

The period ended with Anvil Range shareholder Cominco (which serves as Anvil’s exclusive zinc marketing agent in Europe) purchasing 4 million additional shares, to hold 28% of all outstanding Anvil Range shares. Cominco shares gained $3.10 as a result, closing at $39 after $48.5 million worth of trades.

Falconbridge was heavily traded during the period; 8 million shares crossed the floor as the stock climbed 65 cents to $30.80. Nickel rival Inco lost $1.05 to close at $45.70.