TORONTO STOCK EXCHANGE
The oil price hit an all-time high, breaking US$60 per barrel, over the June 21-27 period; however, the U.S. stock market reacted by sliding lower. The S&P 500 index slid 25.4 points, closing at 1,190.69 points, while the Dow Jones Industrial Average closed 318.3 points lower at 10,290.78 points.
Alcoa led the volume traders, but lost value. The company reported that second-quarter restructuring will require about 6,500 layoffs at operations. In addition, the company expects to record an after-tax profit of US$219 million on the sale of its Elkem shares, a net tax benefit of US$100-120 million, and after-tax charges of US$220-250 million in the quarter. Almost 19.8 million shares traded hands, though the share price closed US$1.91 lower at US$26.09.
In a move to focus on its gold operations, Newmont Mining has sold its Golden Grove zinc-copper mine in Western Australia to Australian-based Oxiana for US$205 million. Golden Grove produced 10,400 oz. gold, 51 million lbs. zinc and 20 million lbs. copper from January to May, and its reserves are substantial. Newmont stock fell US26 to close at US$39.08 on a volume of 13.6 million shares.
Phelps Dodge lost most of the gains it made in the previous week, falling US$3.44 to close at US$92.01 on a volume of 11 million shares.
The Chinese demand for steel has weakened, and steel producers such as Brazilian-based CVRD have felt the pinch. More than 12 million shares changed hands, making it the third-highest volume trader, but the price fell US$1.60 to close at US$28.85.
More law offices have joined the fray in class action lawsuits against DRDgold, alleging the company misrepresented operations at its North West mines in South Africa. Shares fell 13%, or US15, to close at US$1.01. More than 8 million shares traded.
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