Profit-taking took hold of the Toronto stock market during the Feb. 16-22 report period, with the TSE 300 composite index falling sharply after reaching an all-time high of 9,463.54 on Feb. 17. The composite was down 161.20 points, or 1.7% of value, over the period, closing at 9,194.86.
The metals and minerals sub-group was one of the leaders of the downward charge, plummeting 253.08 points, or 6.1%, to 3,910.94. In that atmosphere, the performance of the sad-sack gold group looked almost stellar, as it closed only 3.49 points lower at 4,767.85.
The base metal markets were quiet, except for the continuing noise from nickel. London Metal Exchange official fixings rose throughout the report period, with the metal fixed at US$4.67 per lb. on Feb. 22 — an increase of 22.
The major nickel issues didn’t share in the euphoria, with Inco down $2.50 at $28.70 and Falconbridge $3.10 lower at $23.25. Weakness was general among the big metal producers, as Alcan fell $2.90 to close at $53.70, Noranda shed 70 to finish at $16.60 and Cominco plunged $2.90 to end up at $24.
Inmet Mining fell 30 to $2.70, despite having announced strong financial results: 1999 earnings jumped 27% to $39.5 million, while revenue climbed 10% to $116.6 million.
Rio Algom slipped 50 to $17.25. The major reported record copper production for 1999 of 405 million lbs. Production in 2000 is expected to top 440 million lbs. and be sold at an average of US80 per lb. (Copper has already surpassed that target, ending the report period at US82 per lb.)
The precious metals were once again led by palladium, as Russian supply problems persisted. The price vaulted past US$800 per oz. in trading on Feb. 21 and was fixed US$146 higher at US$798 in London on Feb. 23. Platinum, its newly poor relation, was the only loser over the period, falling $39 to US$510 per oz. Gold was quiet but stronger, and fixed at US$305.25 on Feb. 23.
Band-Ore Resources joined the hunt for diamonds in northern Ontario, nabbing prospective ground in the Wawa area from three prospectors. Several targets have already been selected for drill-testing. Band-Ore closed up 63 at $1.27.
Gold and industrial mineral explorer South American Gold & Copper rose 12 to 20 on news that it had secured US$5 million to develop its Cal Norte lime project in Chile. Startup is projected for the second quarter of 2001.
Fairstar Explorations jumped 147% to 1.80, only to slip 40 by presstime. On Feb. 23, the junior announced it had entered discussions with potential partners to explore and develop its Benso gold concession in Ghana. Fairstar recently announced that it plans to restructure itself as a dot.com entity and form a new company to manage its exploration assets.
Be the first to comment on "Profit-takers derail TSE after record highs"