Trading Summary (May 29, 2001)

The Toronto Stock Exchange‘s 300 composite index fell 39.14 points on Tuesday to close at 8,252. The market shrugged off a modest 25-basis-point interest rate cut by the Bank of Canada. The oil and gas sector, which gained 283.56 points (or nearly 3%), far outpaced the other four subindexes that finished in the black. Bolstering the oil and gas issues was Gulf Canada Resources, which jumped $2.93 to $12.18 after agreeing to a US$4.33-billion takeover by U.S.-based Conoco.

The metals and minerals subindex edged up 0.73 point to 4,879.21. Sherritt International was the busiest base metal issue with nearly 1.4 million shares on the go. The stock slipped a penny to $5.34. Falconbridge, off 40 at $19.10, and Noranda, 28 lower at $17.22, were among the few losers. Inco gained 33 to $30.03, Teck’s B series rose 15 to $16.50, Cominco climbed 60 to $35.45 and Alcan added a dime to hit $69.10.

The TSE’s gold issues were less fortunate, falling 137.25, or 2.7%, as a group. Kinross Gold remained in investors’ sights, falling 8 to $1.32 on nearly 1.2 million shares. Placer Dome shed $1.05 to $17.30 on more than 1 million shares. Most of the other issues performed similarly.

Junior Etruscan Resources stood out among the golds, gaining 3.5, or 10%, to 38.5. The company recently inked a deal to purchase all of Diversified Minerals Resources’ assets in Ivory Coast, West Africa. It also signed a mining convention with the Republic of Mali to explore and develop the 220-sq.-km Djelimangara permit, south of the Sadiola Hill gold mine.

Canada’s junior exchange finally took a breather after posting solid gains over the past three weeks. The Canadian Venture Exchange dropped 24.24 points, or 0.7%, to finish the day at 3,322.54. The Mining Index followed suit, losing 47.40 points, or 0.7%, to close at 7,144.3.

Investors bailed out of New Blue Ribbon Resources following the assay results from the first round of drilling on the Moose diamond property in Manitoba. Stock in the junior plunged 13 to close at 17 on over 1 million shares. The company’s joint-venture partner, BHP Diamonds, tested seven magnetic anomalies on the project without hitting kimberlite. The junior’s shares doubled on news that the first two holes cut significant zones of sulphides

Shares in Donner Minerals gave back half of yesterday’s gains, losing 2 to 16 on a volume of 448,500. Investors have bid up the stock following the creation of the SVB Nickel Company. To form the new entity, the junior pooled some of its interests in the Voisey’s Bay area of Labrador with ground held by Cypress Development NDT Ventures, Rcom Venture and Curion Ventures.

Investors rewarded Kensington Resources after the company announced the adoption of a Shareholder Rights Plan to protect its shareholders from unfair, abusive or coercive takeover strategies. Kensington ended the day up 6 to 65 on 190,000 shares.

Inca Pacific Resources ended the day flat at 32 on 159,833 shares. The company’s joint-venture partner on the Magistral copper-molybdenum property in Peru is in the middle of a major drill program.