STOCK MARKETS — Toronto market calms down after a stormy October — TSE golds mostly down; base metal issues hold steady

The Toronto Stock Exchange jumped off the roller-coaster this past week in favor of the calmer ups and downs of the merry-go-round.

Over the report period ending Nov. 4, the TSE 300 composite index was up and down, and then up and down once more. In the process, it made a net gain of 190.75 points (2.8%), finishing at 6,927.06. Still, after the crash-and-recover cycle of mid-October, this more manageable volatility was welcome.

On the currency markets, the Canadian dollar hit bottom, shattering into bronze bits worth less than US71cents each before regaining half a cent to close the period down less than a tenth of a penny, at US71.24cents. The Looney lost 1.55cents of its value against the British pound, while it held its own against the Japanese yen and the Deutschmark.

Like the market, gold quieted down somewhat after some very turbulant times.

The yellow metal closed out the report period at US$314 per oz., up 90cents for the week, but still far below 1996 levels. Its precious partner, platinum, was unchanged at US$408 per oz., while silver gained 6cents to finish at US$4.85 per oz.

As is often the case, Barrick Gold led the TSE gold stocks in both volume and value traded, but its shares shed 40cents to close the report period at $28.70. Another heavily traded major, Placer Dome, gained a nickel, closing at $21.70.

Royal Oak Mines was down a nickel, at $3.40; TVX Gold was off 30cents, at $6, Teck lost $1.55, dropping to $23.50; and Kinross Gold lost 30cents, falling to $5.65. Greenstone Resources, however, was a big winner, tacking $1.30 on to its share price, to hit $11.65.

The leader among the penny gold stocks was Westgold Resources, which saw its shares rise 59%, from 22cents to 35cents. Another TSE penny stock to have a great week was diamond explorer Trans Hex International, which climbed 56%, from 80cents to $1.25.

The TSE metals and minerals sub-group was steady over the report period, gaining 36.85 points (0.9%) to close at 4,180.72. Among the base metals, lead and zinc were the gainers, picking up 1cents each to reach US27cents and US56cents per lb., respectively. Copper lost 3cents, dropping to 89cents per lb., while nickel lost 7cents, falling to US$2.75 per lb.

Noranda led the base metal stocks during the report period, gaining $1.10 to close at an even $25. The diversified major is diversifying further still, having announced its intention to build a plant in Quebec that will produce vast amounts of magnesium from asbestos mine tailings. Noranda also announced improvements in both earnings and cash flow in the third quarter.

Shares of Inmet Mining were up 30cents in unusually heavy trading, to finish at $7.40. The company sold another poorly performing asset, the Troilus mine in Quebec, and is now planning to focus most of its resources on the Antamina copper project in Chile.

At the other end of the Troilus sale was Prime Resources, down 85cents to $9.75.

Inco shares were heavily traded as usual, but shed 70cents, dropping to $28.30 despite rumors that the company is close to a deal with natives for development of Voisey’s Bay.

The Potash Corp. of Saskatchewan was the biggest winner among TSE mining stocks, gaining $9 to close at an even $120 in the wake of European-owned competitor Potacan’s announcement of plans to close its namesake mine in New Brunswick because of flooding.