Trading Summary (February 17, 2003)

The Toronto market moved up again on Monday, with the TSX Composite index gaining 76.98 points to close at 6,564.11. Easing worries about war in the Persian Gulf seem to have been at the root of the market’s temper, as only the golds and the energy stocks lost ground. In a sinister development, the information technology stocks led the market, gaining 2.5% on the day — if the market is betting on both peace in the Gulf and a resurgence in the tech stocks, we’re back to the most irrational kind of exuberance.

The base metals and mining stocks were up modestly, but the gains were spread across the board. Inco was a good measure of the temperament in the sector, with a gain of 17 leaving the big nickel miner at $31.60. The big winner on the day was Falconbridge, which picked up 35 to close at $16.80 in very light trading.

The volume leader among the base metals was Ivanhoe Mines, which fell a nickel to $3.20 on a volume of 1.3 million shares. Sherritt International was also down, falling 9 to $4.65.

The golds moved pretty much in lock-step as bullion prices declined. The London afternoon fix, always a signal for the Toronto golds, was US$347 per oz., down US$7.25 from Friday. Gold prices crept back up in New York trading, with the Comex closing just over US$351, but the gold index was still down 2.28 points, or 1.2%, to 181.78.

Interestingly, the two most actively traded stocks both moved against the tide; Bema Gold, which announced favorable drilling results from the Verde and Pancho deposits at the mothballed Refugio gold project in Chile, was unchanged at $1.73 on a volume of 1.2 million, and its partner at Refugio, Kinross Gold, rose 8 to $11.18 on a volume of 1.1 million shares.

A gain of 20 by index heavyweight Barrick Gold, which closed at $24.20, offset an otherwise dismal day for the golds. Placer Dome fell 38 to $15.61, while Goldcorp was down 45 at $17.30 and Glamis Gold was off 64 at $17.01.

Diamond explorer Tahera was the most active of the Toronto juniors on Monday, rising 3 to 24 on a volume of 2.4 million shares.

Canada’s junior exchange started the trading week off by losing ground, despite some strong gains in junior diamond explorers. The S&P-TSX Venture Exchange composite index lost 7.55 points, or 0.69% and closed at 1,087.94.

The diamond play on the Melville Peninsula in Nunavut once again took center stage. Shares of Northern Empire Minerals and Storoway Ventures rocketed over 20% each. The partners, picked up more ground in the vicinity of their Aviat project located 850 km northwest of the territorial capital of Iqaluit. So far, two diamond-bearing kimberlites have been identified on the Aviat property. Shares in Northern Empire added 23 to close at $1.30 on a volume of 1.8 million, while stock in Storoway added 29 to close at $1.39 on nearly 2.7 million shares.

Investors sold off shares in Mustang Minerals. The junior lost 21 to close at 62 on 808,023 shares. The company is in the midst of a drill program over the McAra massive sulphide property some 120 km south of Timmins, Ontario.

American Bonanza Gold Mining ended the session at 35, up 2 on just over 2 million shares. Toronto-listed Gold Corp recently took a 10.4% stake in the junior by being the largest buyer of an 18.3 million unit private placement priced at 22 each. A unit holds one share and one half a warrant, which is exercisable at 28 for a year.