Toronto Stock Exchange Oct. 31-Nov. 6

Finance Minister Jim Flaherty’s Halloween announcement of changes to the tax treatment of income trusts was the “boo” heard round the markets during the reporting period Oct. 31-Nov. 6. A previously soaring Toronto Stock Exchange saw its composite index drop 342 points to a mid-day low on All Saints, but once calm returned the market resumed a moderate upward trend: the composite finished at 12,333.28, up 58.88 points for the five trading days.

The few income trusts in the mining sector were beaten badly by the government’s announcement, meant to equalize tax treatment of income trusts and ordinary corporations. Coal miner Fording Canadian Coal Trust fell $3.98 to $24.32, Noranda Income Fund, which operates the Noranda electrolytic zinc plant at Valleyfield, Que., fell $2.16 to $9.68, and the granddaddy of the mining trusts, the Labrador Iron Ore Royalty Income Fund, fell 57 to $25.68. All three touched 52-week lows on the way, Fording at $23.20, Noranda Income at $7.40, and Labrador Iron at $22.35.

Other mining stocks were beating the broader market handily, especially the precious metal miners. The Toronto gold index was 3% higher at 304.13 points, on the strength of a rising bullion price; London gold had rolled up US$19 per oz. in the first four days of the trading period, and finished Monday at US$626.10.

Kinross Gold’s takeover bid for Bema Gold, apart from neatly curing Clive Johnson’s case of telephone-elbow, sparked some further speculation on mid-tier takeover targets. Among the usual suspects, Meridian Gold was up $2.06 at $29.61 and Agnico-Eagle Mines $1.97 to $43.17.

Iamgold, which was up 40 at $9.93, is closer to a merger with Cambior, which rose 16 to $4.12; Cambior shareholders voted over 99% in favour of the merger plan under which they get 0.42 of an Iamgold share for one Cambior, and court approval of the deal is expected in a day or two.

The base metal companies were also mostly better, with the Toronto mining and metals index rising 1.1% to 617.05. Again, strength in the metal markets moved the corresponding equities: an impressive list of mid-tier base metal miners made 52-week highs, including nickel producer LionOre Mining International, up 24 to $9.69; copper-sensitive Inmet Mining, up 98 to $55.70; and zinc miner HudBay Minerals, up 30 to $19.70. Off-index, Anvil Mining was 51 better at $11.32 with a new high of $11.50, and Lundin Mining, newly merged with EuroZinc, touched $44.00 before settling at $42.70, up $4.12.

Although Cameco still struggled, sliding 65 to $38.75, other uranium companies were lifted by the prospect of production shortfalls from Cameco’s Cigar Lake and McArthur River mines. Denison Mines, which rose $2.49 to $24.40, merger partner International Uranium and Denison-affiliated trader Uranium Participation Corp. made a trifecta of new highs: Denison traded at $24.50, International Uranium closed on a high of $8.72, up 99, and Participation closed on a high of $12.25, up 75.

TSX greatest percentage change

		VOLUME(000s)	HIGH	LOW	CLOSE	CHANGE
HMZ Metals wt	HMZ.WT	1606	0.02	0.01	0.015	+200.0
Campbell Res	CCH	11365	0.13	0.075	0.125	+56.2
Diamond Fields	DFI	2278	0.125	0.07	0.115	+43.7
Goldstake Exp	GXP	447	0.16	0.11	0.15	+36.3
Bema Gold wt	BGO.WT	1667	4.50	3.05	4.19	+34.2
Corona Gold	CRG	259	0.55	0.30	0.44	+33.3
Denison Mn wt	DEN.WT	82	12.25	7.79	12.00	+32.6
Revett Mnls	RVM	436	1.35	1.10	1.35	+28.5
GLR Res	GRS	100	0.39	0.285	0.355	+24.5
Khan Res	KRI	3013	3.08	2.11	2.90	+24.4
Northgate M wt	NGX.WT	839	0.75	0.50	0.56	-31.7
Tahera Diam	TAH	14924	1.52	0.89	1.00	-31.0
Northgate wtA	NGX.WT.A	163	0.76	0.50	0.65	-22.6
SouthernEra wt	SDM.WT	19	0.105	0.07	0.07	-22.2
Noranda Inc Fd	NIF.UN	505	11.75	7.40	9.68	-18.2
X-Cal Res	XCL	436	0.35	0.29	0.29	-15.9
Rio Narcea wt	RNG.WT	508	0.435	0.37	0.37	-14.9
Gitennes Expl	GIT	309	0.32	0.27	0.27	-14.2
Fording C C T	FDG.UN	11670	28.84	23.20	24.32	-14.0
Capital Gold	CGC	32	0.35	0.305	0.305	-12.8

TSX greatest value change

		VOLUME	CLOSE	CHANGE
Potash Cp Sask	POT	2537440	155.78	+12.53
Lundin Mng	LUN	3864088	42.70	+4.12
Denison Mn wt	DEN.WT	82237	12.00	+2.95
ISh COMEX G Tr	IGT	17473	70.04	+2.76
Denison Mines	DEN	2056530	24.40	+2.49
Teck Comin B	TCK.B	4842922	85.91	+2.41
Banro Res	BAA	339370	16.07	+2.37
Meridian Gold	MNG	3315521	29.61	+2.06
Central Gold-T	GTU.UN	33867	27.12	+2.01
Agnico-Eagle	AEM	4361378	43.17	+1.97
Dundee Bancrp	DBC.A	91234	57.00	-4.00
Fording C C T	FDG.UN	11669709	24.32	-3.98
Noranda Inc Fd	NIF.UN	504523	9.68	-2.16
Dundee Prec Mt	DPM	210219	10.75	-1.51
Vista Gold	VGZ	490742	9.60	-1.08
Kinross Gold	K	32492078	13.53	-0.93
Cameco Corp	CCO	16573308	38.75	-0.65
Teck Comin A	TCK.A	10294	88.40	-0.60
Quadra Mng	QUA	3200921	9.00	-0.60
Labdr I-Ore Ro	LIF.UN	1063967	25.68	-0.57

TSX most active issues

		VOLUME(000s)	HIGH	LOW	CLOSE	CHANGE
Bema Gold	BGO	98995	6.04	4.76	5.97	+1.14
Equinox Minls	EQN	53088	2.15	1.95	2.07	+0.09
Kinross Gold	K	32492	15.40	13.45	13.53	-0.93
Tiomin Res	TIO	30195	0.24	0.155	0.215	+0.02
Goldcorp	G	29694	31.00	28.19	29.45	+0.87
Breakwater Res	BWR	24903	1.72	1.46	1.68	+0.17
Paladin Res	PDN	24152	5.70	4.80	5.64	+0.61
Barrick Gold	ABX	16886	35.80	33.75	33.81	-0.19
Cameco Corp	CCO	16573	39.65	37.55	38.75	-0.65
Tahera Diam	TAH	14924	1.52	0.89	1.00	-0.45