STOCK MARKET — TSE soars to record highs while gold and base metals drop — Platinum and palladium bounce back, base metals hold their ground

The Toronto Stock Exchange 300 composite index hit record numbers once again, ending the report period of March 25-31 at 7,551.23, for a gain of 7.27 points from the previous week.

The week was stimulated by heavy trading volumes, starting with 124.2 million shares crossing the floor on March 25. Volumes dropped to 98 million mid-week, then rose to 117.8 million on March 31.

The Canadian dollar gained 8 basis points against the American greenback over the report period, finishing at US70.55cents on March 31. The loonie also gained ground on the pound, franc and yen, but lost some to the deutschmark.

Gold issues enjoyed a robust week, with the yellow metal rising US$3.10 to reach a morning fix on the London Metal Exchange of US$301.60 per oz. on April 1. Silver edged ahead US13cents to US$6.47 per oz.

Platinum and palladium went for a rough ride as affairs settled in the Russian parliament. Both metals made significant gains in the previous report period on the news that President Boris Yelstin had fired his entire cabinet, leaving future supplies of the metals volatile. The ease in Russian political tension, however, caused platinum to fall US$3 to US$409 per oz.

and caused palladium to drop US$14 to US$266 per oz.

The TSE’s gold and precious metals sub-group was off 77.3 points, or 0.41%, to close the week at 4,191.79. Gold producers, however, were able to offset the sub-group’s lacklustre performance: Barrick Gold rose $2.05 to $30.70; Placer Dome jumped 70cents to $18.60; and Kinross gained 30cents to $5.95.

Also making gains were Franco-Nevada, up 60cents to $33, and Euro-Nevada, up 5cents to $24.

Shareholders of Royal Oak Mines breathed a sigh of relief as the company reversed its fall into penny-stock territory, gaining a healthy 43cents to $1.63. The rebound came after the company secured a US$120-million debt financing from Toronto-based Trilon Financial. Royal Oak says it will use the funds to restart and complete development work at its Kemess gold-copper project in northern British Columbia. A portion of the proceeds will go towards repaying an existing loan of US$44 million and as start-up capital for Kemess.

Crystallex International saw its share value increase to $6.85, a gain of $1.90. This accounts for nearly all of the company’s accrued losses in the previous period, when it was chastised by a Venezuelan congressman for its claim to title of the Las Cristinas gold property, which he described as unfounded. Crystallex quickly issued a statement that it was the subject of a “concentrated disinformation campaign,” and a victim of a conspiracy of short sellers, although it did not directly refute the substance of the congressman’s statement.

The TSE’s metals and minerals sub-index fell 26.91 points, or 0.41%, to 6,600.05. With the exception of nickel, which dropped 1cents to $US2.49 per lb., all of the base metals remained on par with performances in the previous period.

Inco sunk 95cents to $26.50, while Rio Algom shed 35cents to end at $26.70.

Gainers included: Cominco, up 85cents to $24.95; Teck B-series, up 60cents to $20.50; and Noranda, up 40cents to $28.10. Boliden installment receipts rose 15cents to $4.10, while Cambior gained 65cents to finish at $9.65.

Potash Corporation of Saskatchewan fell $2.60 to $128.90. The company recently expanded its holdings by purchasing Potash Company of Canada.

Potash Corp. plans to use Potacan’s New Brunswick mill to upgrade potash mined in Saskatchewan to granular product for shipment to the United States.

The hottest penny stock on the eastern markets was Toronto-based Northfield Minerals, which climbed 14cents to 31cents. The company, which holds a majority stake in NFX Gold, has been active at its Macuchi, Carolina and Nambija gold properties in Ecuador.

Toronto-based diamond miner Rex Mining zoomed up 50cents to $1.60 on heavy trading. The stock has been strengthening since February on encouraging results from its Mauritanian diamond exploration properties and a dramatic improvement in the political stability of Sierra Leone.