US markets move lower, June 22-26

U.S. stocks slumped as the Greek governmentmoved closer towards defaulting on  debt payments to the International Monetary Fund. The Dow Jones Industrial Average fell 0.4% to 17,946.68, while the S&P 500 Index also dropped 0.4% to 2,101.49. The Nasdaq sank 0.7% to close at 5,080.51. The spot price for gold fell -2.4%, or US$29, to 1,171 per oz., while the Philadelphia Gold & Silver Index dropped 3% to 64.68.

Freeport-McMoRan topped weekly trading and had the greatest value change after it signalled to the U.S. Securities and Exchange Commission its intention to raise capital through an initial public offering for its new oil and gas division. Freeport shares rose 0.9% to US$19.94.

The filing was announced two years after the international producer spent US$9 billion to acquire sizeable assets in the U.S. oil and natural gas sector by buying Plains Exploration & Production Co.

Freeport suggested in April it might spin out its oil and gas division, after slumping oil prices took its toll on the company’s debt load. 

The global conglomerate based in Phoenix didn’t provide any information about the number of shares or pricing in its regulatory filing, but plans to list the common stock on the New York Stock Exchange under “FMOG.”

Central GoldTrust was marked as high-value, as shares rose 0.5% to US$41.12 following an enhanced cash-redemption feature whereby the company advised shareholders to reject a hostile takeover bid by Sprott Asset Management Gold. 

With the feature shareholders can redeem their shares for cash, in the amount of 95% of net asset value.

The gold bullion investment fund has also commenced a legal proceeding against Sprott seeking declaration from court that the takeover offer is an illegal proxy solicitation.

Potash Corp. of Saskatchewan (PotashCorp) topped trading and generated the highest values, as shares rose 3.5% to US$31.35.  The German competitor, K+S, owns the Legacy potash mine in Saskatchewan near one of PotashCorp.’s biggest operations.