Toronto Stock Exchange The year ends on an uninspiring note

A free-falling U.S. dollar, without a parachute in sight, provided the only real action in financial circles this week. In yen terms, the buck dived to 123.7 — a post-war record low. The dollar crisis had a marginal impact on bullion prices and weekly trading activity. In Toronto, the tse composite added 18 pts today to close at 3,167.8 pts.

The week was generally uninspiring, with gold holding its ground at $484(US) per oz. Following several violent gyrations immediately after the Oct 19 crash, Toronto appears to be building a firm base around 3,000 pts. The last three weeks in fact, have been characterized by monotonous, directionless trading — a symptom arising from the walloping most investors took in October.

If investors appear confused, so do the analysts. Two schools have emerged; one calling for a big downturn in the U.S. economy which would signal a deflationary period and the other calling the exact opposite. The latter group sees gold surging to $850 whereas the former pegs bullion at $300 on the downside.

On a more reflective note, the investor’s New Year’s Eve resolutions will no doubt be based on the lessons learned in 1987 and especially from the Oct 19 market collapse. These will include: 1) I will dissociate myself from the lemming-like herds which swept me along o ver the precipice on Oct 19. 2) I will never chase a stock, nor will I ever marry one again. 3) I will act like a prudent investor, taking profits as set objectives are attained. 4) I will never be greedy again. 5) I will “buy low and sell high.”

All of the above were thrown to the wind during the 1987 mania which peaked last August.

Getting back to reality, the major news in the resource sector was the Total Resources bid of $10 per share for all the outstanding shares of Getty Resources. With a 49% interest in the largest undeveloped gold resource in Canada, Getty is being targeted for its gold production potential (see front page story). The stock responded immediately moving up from $8 to $10.13 today. Rumors suggest that the Getty board will be seeking more than the offered $10 per share. Also, talk is that others are looking at the company, now that its been put into play.

Echo Bay Mines announced a doubling of its gold reserve with news that the Cove deposit hosts more than four million oz. Located in Nevada, the Cove deposit should be producing within two years. Echo Bay was slightly easier at $29.50. Placer Dome, which is planning production from the big Misima gold deposit in Papua New Guinea in 1989, was quiet at $19.75.

Buoyed by robust base metals prices, both Falconbridge Ltd. and Inco Ltd. held on to recent gains. Inco, which is the world’s largest nickel miner, was stronger at $28.50 — up 37 cents on the day. Falconbridge advanced by 50 cents to $24.63 on volume of 439,942 shares valued at $10.75 million. In fact, trading has been so active in the shares of both companies that both topped our most active list this week.

New Quebec Raglan, which is controlled by Falconbridge, happens to control one of the finest undeveloped high grade nickel deposits in the world. Located in Quebec’s remote Ungava area, the deposit is no doubt being reviewed by Falconbridge staff following every nickel price increase. The issue advanced 15 cents to $2.15.

Hayes Resources, which raised millions in Europe via an equity- linked debt issue last fall — and that with no cash flow in sight — perked up to $2.20. Drilling of several targets in the prolific Carlin area of Nevada is under way.