Equity markets Stateside were lower over the five trading days May 30-June 5, as sentiment grew that the Federal Reserve Bank was turning to a tight-money philosophy. Fed chairman Ben Bernanke, in a panel discussion at the International Monetary Conference, was openly hawkish about U.S. interest rates, saying that “the (Federal Open Market) Committee will be vigilant to ensure that the recent pattern of elevated monthly core inflation readings is not sustained.”
Market participants took his very obvious implication, and stock prices were hit on June 5, leaving the Standard & Poor’s 500 Index down 14.87 points (1.2% of value) at 1,265.29. The Dow Jones Industrial Average fell even more sharply, losing 2%.
The fallout from Bernanke’s remarks affected the broad market and the base metals, but at the same time the energy sectors and the golds were reacting to tensions in the Persian Gulf. Crude oil prices were higher, with New York light sweet crude at US$72.50 and North Sea at US$70.33, and gold, which had bounced off US$625 per oz. on June 2, was back up to US$641.80 on the next trading day.
That set the stage for rallies in both the coal and gold stocks. In the coals, the best gains were made by Peabody Energy, which rose US$1.98 to US$64.93, and Kerr McGee, which rose US$2.01 to US$110.86; there were other winners, like Foundation Coal Holdings, up US67 to US$46.91, and interlisted Fording Canadian Coal, up US60 to US$35.48.
Among the golds, three big gainers were offshore companies: Minas Buenaventura picked up US$1.44 to close at US$27.50, Lihir Gold added US$1.43 to finish at US$45.50, and Meridian Gold gained US$1.61 to end the trading period at US$32.75.
Newmont Mining tacked on a quarter to close at US$53.30, but the big South Africans were all lower: AngloGold Ashanti fell US81 to US$46.68, Gold Fields US$1.48 to US$21.02, and Harmony Gold Mining US34 to US$14.44.
On the base metal side, Rio Tinto was down US$14.29 to US$217.21, Phelps Dodge backed up US$3.21 to US$86.94, and Anglo American slid US84 to US$19.90.
U.S. greatest percentage change
| Volume(000s) | High | Low | Close | Change | ||
| Centrl Minera* | CENMF | 55 | 0.07 | 0.04 | 0.07 | +75.0 |
| Fischer-W Gld* | FWGO | 454 | 0.09 | 0.082 | 0.085 | +26.8 |
| Lafayette Mng* | LYMGF | 34 | 0.07 | 0.06 | 0.06 | +20.0 |
| Peru Copper* | CUP | 5403 | 5.48 | 3.82 | 5.29 | +19.6 |
| El Capitan Pr* | ECPN | 1161 | 3.15 | 2.60 | 3.13 | +18.5 |
| Great China M* | GCHA | 935 | 0.205 | 0.175 | 0.175 | +16.6 |
| Orezone Res* | OZN | 273 | 1.84 | 1.65 | 1.79 | +15.4 |
| Vista Gold* | VGZ | 475 | 9.19 | 8.32 | 9.00 | +14.6 |
| Canarc Res* | CRCUF | 212 | 0.64 | 0.54 | 0.63 | +13.5 |
| Almaden Mnls* | AAU | 150 | 2.59 | 2.37 | 2.56 | +10.8 |
| World Vent* | WVNTF | 313 | 0.30 | 0.13 | 0.195 | -32.7 |
| Northw Min Vt* | NWTMF | 811 | 0.619 | 0.53 | 0.53 | -12.4 |
| CanAlaska Ven* | CVVLF | 410 | 0.65 | 0.545 | 0.546 | -12.2 |
| Global Gold* | GBGD | 54 | 2.00 | 1.80 | 1.80 | -10.0 |
| Entree Gold* | EGI | 305 | 1.28 | 1.05 | 1.18 | -9.2 |
| Madison Minls* | MMRSF | 64 | 0.37 | 0.33 | 0.33 | -8.3 |
| Aberdene Mine* | ABRM | 335 | 0.54 | 0.435 | 0.45 | -8.1 |
| Bullion Rvr G* | BLRV | 560 | 0.95 | 0.86 | 0.86 | -7.5 |
| Trend Mng* | TRDM | 363 | 0.24 | 0.17 | 0.185 | -7.5 |
| Mountain Prov* | MDM | 21 | 3.55 | 3.17 | 3.45 | -7.2 |
U.S. greatest value change
| Volume | Close | Change | ||
| Kerr McGee* | KMG | 3767900 | 110.86 | +2.01 |
| Peabody Enrgy* | BTU | 10821700 | 64.93 | +1.98 |
| Meridian Gold* | MDG | 2502700 | 32.75 | +1.61 |
| Westmoreland* | WLB | 52700 | 29.98 | +1.47 |
| Buenaventura* | BVN | 2103100 | 27.50 | +1.44 |
| Lihir Gold* | LIHRY | 213574 | 45.50 | +1.43 |
| Vista Gold* | VGZ | 474500 | 9.00 | +1.15 |
| Agnico-Eagle* | AEM | 3735600 | 34.68 | +1.06 |
| Seabridge Gld* | SA | 305400 | 10.85 | +1.04 |
| MDU Res* | MDU | 802000 | 36.51 | +1.02 |
| Rio Tinto* | RTP | 1185400 | 217.21 | -14.29 |
| Soc Quim&M Ch* | SQM | 193600 | 100.43 | -3.97 |
| Potash C Sask* | POT | 1192300 | 89.99 | -3.39 |
| Phelps Dodge* | PD | 13339000 | 86.94 | -3.21 |
| ASA (Bermuda)* | ASA | 235200 | 61.27 | -2.34 |
| Yanzhou Coal* | YZC | 175000 | 35.79 | -2.16 |
| Cleveland-Cli* | CLF | 2163500 | 74.76 | -1.73 |
| Southern Peru* | PCU | 2750500 | 86.96 | -1.64 |
| Gold Fields* | GFI | 5793800 | 21.02 | -1.48 |
| Freeport McMo* | FCX | 9819200 | 56.74 | -1.43 |
U.S. most active issues
| Volume(000s) | High | Low | Close | Change | ||
| UNICO Inc* | UNCN | 223466 | 0.002 | 0.002 | 0.002 | 0.00 |
| AuGrid* | AUGC | 118411 | 0.00 | 1.0E8 | 0.00 | 0.00 |
| Newmont Mng* | NEM | 16301 | 53.54 | 50.14 | 53.30 | +0.25 |
| Coeur d Alene* | CDE | 14852 | 5.14 | 4.51 | 5.11 | +0.25 |
| Alcoa* | AA | 14051 | 33.11 | 31.35 | 32.57 | +0.05 |
| Silverado* | SLGLF | 14010 | 0.114 | 0.10 | 0.112 | +0.011 |
| Phelps Dodge* | PD | 13339 | 88.08 | 81.60 | 86.94 | -3.21 |
| Goldspring* | GSPG | 12691 | 0.017 | 0.012 | 0.012 | 0.00 |
| CVRD* | RIO | 11939 | 48.15 | 45.70 | 47.40 | -1.17 |
| Peabody Enrgy* | BTU | 10822 | 65.96 | 60.16 | 64.93 | +1.98 |
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