Even a $6.4-billion merger proposal from Manufacturers Life for Canada Life wasn’t enough to hold off the profit takers on Monday, as the Toronto Stock Exchange composite index fell 73.11 points to 6,504.09. It was a fuel-and-food day on the exchange, with only the energy and consumer-staples sectors showing gains.
The golds were off 1.76 points to 179.45, though bullion was only modestly lower in London and New York trading today. The yellow metal saw a price of US$325.10 per oz. in the London afternoon fix and crept up slowly in later Comex trading.
The biggest losers on the gold index were Agnico Eagle Mines, which was off 48 at $19.77, and Bema Gold, which fell 5 to close at $1.90; Bema recently closed a $16-million financing. Barrick Gold was off 39 at $23.71 and Placer Dome slid 27 to $16.02.
The base metals were lower, too, with the Metals and Mining index sliding 2.47 points to 122.35. Inco continued to reel from its announcement that the Goro nickel-laterite project was under review; the nickel producer lost another 94 to close at $29.30. Cautious statements by Japanese industrial conglomerate Sumitomo, which had been ready to buy a 25% stake in Goro, may also have been read as pessimistic about the project.
The only stock on the index that was up was Fording, which gained 4 to close at $32.70. Sherritt International has not closed the door on its bid (in partnership with the Ontario Teachers Pension Plan) to take over Fording and turn it into an income trust. Sherritt was down 5 at $4.13 and Teck Cominco, which has reached a white-knight deal with Fording to combine its Elkview coal mine with Fording’s operations, was off 20 at $11.30. Credit rating agency Standard & Poor’s has maintained Teck’s BBB rating but issued a watch with negative implications following the deal with Fording.
Canada’s junior exchange remained stuck in bear mood with decliners swamping advancers by a 344-to-270 margin. The S&P-TSX Venture Exchange composite index lost 2.72 points, or 0.28% and closed at 974.04.
Pan Asia Mining ended the session unchanged at 11 on 808,800 shares. The company is in the midst of a $100,000 financing aimed at its 701 diamond project in China.
Desert Sun Mining added 4 to close at 53 on 310,500 shares. The junior is about half way through its first round of drilling at the Jacobina gold project in Brazil. Eight areas are being tested and so far 7 holes totaling about 1,500m have been completed at the former Canavieiras mine area, Joao Belo Sul, which is the possible southern extension of the former Joao Belo mine, and target areas at Rio Coxo, and the Serra do Corrego, a potential open pittable zone. Three holes are in progress at Canavieiras, Joao Belo Sul and Morro do Cuzcuz and one additional hole is planned for Canavieiras. Drilling is expected to be completed by Christmas.
Canadian Royalties added 7 to close at $2.27 on 270,700 shares. Stock in the company has traded heavily over the past month since announcing drill results from the Mesamax nickel, copper, platinum, palladium discovery zone on the Expo Unganva property in northern Quebec.
Be the first to comment on "Trading Summary (December 09, 2002)"