The ups and downs on Wall Street, Sept. 26-30

The Dow Jones Industrial Average managed to move up 141.9 points to 10,913.38, during the Sept. 26-30 trading week. However, it ended the third quarter down 12%, representing its biggest percentage drop since the first quarter of 2009.

The bleak July-Sept. quarter was plagued by concerns over the European debt crisis, the possibility of U.S. dipping into another recession, and the slowing growth in economies such as China. To add to the gloom, gold started to lose some of the lustre it gained throughout the quarter towards the end of it. On Sept. 30, the New York spot price for gold tumbled US$32.40 to US$1,624.80 per oz. It was only a month ago that gold was trading above US$1,800 per oz.

The S&P 500 Index slipped 5.01 points to end the week at 1,131.42, while the Philadelphia Gold and Silver Index dipped 3.94 points to 185.

Linux Gold was the week’s biggest percentage gainer, on no news. The company jumped 33.3% to US4¢. Close behind, Tombstone Exploration advanced 25% to US5¢ a share after receiving exploration permits for the Zebra property, which covers 2,000 acres in the eastern part of the Tombstone Mining district in Arizona. The company also retained SRK Consulting to update its NI 43-101 report.

After releasing much news in the previous week, SilverCorp Metals rose 17.8% or US$1.20 a share to US$7.91, making it the week’s largest value gainer.

SilverCorp again rebutted all the allegations of fraud made against it. It says the anonymous claims are a “short and distort manipulation scheme” driving down its share price. The company says all its books and resource numbers have been verified and that there is “no substance to the allegations.”

Then the company bought 4.4 million of its shares for $34.9 million, and filed a lawsuit in New York County Supreme Court against several defendants, such as Alfredlittle.com, for spreading the false claims. SilverCorp has asked the court to get the defendants to pay compensatory and punitive monetary damages and to remove false information about the company from their websites, among other things.

SilverCorp also held its annual and special general meeting on Sept. 23, and reminded shareholders it’ll pay its 2011 second quarter dividend of 2¢ per share on Oct. 21.

After reaching a permitting milestone for its Montanore silver-copper project in northwestern Montana, Mines Management gained 14.7% to US$1.63 on 619,000 shares traded. The company said the U.S. Forest Service has completed a Supplemental Draft Environmental Impact Statement for the project, which brings the company closer to finishing the final phase of permitting.