The Toronto Stock Exchange was modestly higher over the trading period Jan. 24-30, avoiding the wild mood swings it had experienced in December, despite seeing relatively heavy trading. The TSE 300 composite index added 79.52 points, just under 1% of value, to close Jan. 30 at 9,348.36 points.
As has been usual over the past year, the market followed where the Industrial Products sub-group led. But some of the market’s wallflowers — consumer products, construction and forest products — outpaced the broad market nicely. Another was the base metal sector, which added 46.43 points to finish at 3,822.52.
Base metal prices themselves were slightly better, with London Metal Exchange ring prices for nickel up US3 at US$3.23 per lb. Aluminum rose US2 to US77, and zinc and lead were each up a penny at US48 and US23.
Heavyweight integrated mines led the TSE sub-group higher, with Alcan Aluminium the volume leader, trading 4.9 million shares. The big aluminum producer was up 30 at $53.90. Inco was 60 higher at $23.70, and Noranda added 32 to close at $15.22, both with about 3 million shares riding the tape. Cominco rose 61 to $23.86 and parent Teck‘s B-series shares were up 35 at $13.50.
Cameco, which announced a large increase in reserves at its McArthur River uranium operation, rose $1.97 to finish at $27.47.
Among the smaller base metal miners, Sherritt International was off 9 at $4.45 and Aur Resources was 2 higher at $2.10. Boliden, which has concluded a deal to sell its interest in the Norzink zinc plant to Finnish smelter and refiner Outokumpu, was down 5 at $1.15.
The precious metals were generally lower, though a rally in the gold market moved its price back to US$266.20 per oz. in the morning London fixing session. That turned a US$2.30 fall into a US50 rise over the five trading days, but the rally didn’t come in time for the TSE gold and precious minerals index, which was down 108.35 points (or 2.5%), at 4,077.19.
Placer Dome was the most heavily traded of the Toronto gold issues, with 5.4 million shares in motion. Placer was down 45 at $13.15. Rival Barrick Gold, usually better insulated from price weakness because of its hedging program, slid $1.05 to close at $22.95.
The smaller gold producers also took it on the chin, especially the stronger mid-tiers like Agnico-Eagle Mines, which was 73 lower at $9.17, and Meridian Gold, which fell 75 to $9.25.
New boy North American Palladium was up $1.55 at $16.55, despite a slide of $10 in the palladium price to US$1,055 per oz. Diamond producers were mixed, with Aber Diamond up $1.45 at $12.95, Namibian Minerals unchanged at $2.45, and Dia Met Minerals B-series shares off 85 at $20.15.
On the junior boards, Gammon Lake Resources slipped 30 to $4, only to rebound 4 by presstime. The loss coincides with the departure of director Daren Baxter, who resigned his seat to join the Nova Scotia Securities Commission.
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