U. S. MARKETS (March 24, 2008)

It was another week of gut-wrenching turmoil in the markets. Concerns over the financial sector peaked on Sunday, March 16, as U. S. brokerage house Bear Stearns — pushed to the point of bankruptcy — had to accept a US$2-a-share takeover bid from rival investment bank JPMorgan Chase & Co. Jitters over the equity markets pushed the Dow Jones Industrial Average down 184.56 points to 11,972.25, while the Standard & Poor’s 500 Index shed 44.05 points to 1,276.60.

Inflation concerns, equity market volatility and anxiety about the troubled credit market drove gold prices even higher. The precious metal spiked to US$1,002.80 per oz. on March 17, up from its March 11 close of US$969.40. The Amex Gold Bugs Index advanced 15.12 points to 505.76, while the Philadelphia Gold and Silver Index inched up 1.62 points to close at 200.23.

Among the gold stocks the biggest winner, with a US$9.60-per-share gain, was Agnico-Eagle Mines, which closed the March 11-17 trading session at US$79.74. Newmont Mining followed with a US$4-per-share gain to close at US$53.38. But others shared in the merry-making too. Lihir Gold bounced US$3.45 to US$39.74 and Goldcorp rose US$3.31 per share to US$44.22. Barrick Gold was up US$3.27 to US$52.32.

Overall, the stock that gained the most traction over the trading session was Sociedad Quimica y Minera de Chile, which ascended US$20.22 per share to close at US$210. The company is an integrated producer of potassium nitrate, iodine and lithium carbonate, as well as specialty plant nutrition products, and certain industrial chemicals, including industrial nitrates.

The second-best performer during the week — buoyed by the continuing mini-boom in the agricultural sector — was Potash Corp. of Saskatchewan. Record prices for potash and other agricultural products boosted Potash Corp.’s share price to US$155.05, a gain of US$12.02. Other agro-industrial stocks performed well too, including concentrated phosphate and potash crop nutrients producer Mosaic Co., which leapt US$7.55 a share to US$102.91.