Resource stocks up in otherwise gloomy market

The Toronto Stock Exchange felt the effects of New York’s bad days last week, but rallied to finish the period ended March 12 with only a fractional loss. The TSE 300 composite index was down 59.72 points to 4,936.22, a loss of 1.2%, but the gold and metal subindices were both higher.

Fears that U.S. interest rates would not fall provoked heavy selling on U.S. equity markets on March 8, and the TSE 300 composite index fell sharply, though not as steeply as the U.S. boards. Monday brought strong rallies on both sides of the border, leaving both the New York Stock Exchange and the TSE near their earlier levels. Trading volumes on the TSE were moderate the entire week.

The Canadian dollar was generally higher against foreign currencies last week, trading at US73.12 CENTS by noon on March 13. The bank rate has been unchanged at 5.5% since Feb. 22 and rate stability appears to have strengthened the Loony.

Gold was up $3.80 for the week ended March 13. The London bullion dealers’ morning session set the price at US$397.40 per oz., almost erasing the previous week’s loss. Silver was up 22 CENTS to US$5.58 and platinum jumped $7.40 from last week, for a March 13 price of US$413.75 per oz.

The TSE gold and precious metals sub-index advanced just a little, to 12,169.98 for a gain of 11.66 points on the week. The two most actively traded golds both lost ground, with TVX Gold down 50 CENTS to $12.50 and Barrick Resources off 75 CENTS to $39.25. Placer Dome was up 38 CENTS to $38.12, also in active trading. Big gains were recorded by Agnico-Eagle, up $3.50 to $25.25 and Golden Star Resources, up $6.12 to $19.12.

Shares of Hemlo Gold were up $1.75 to close at $18.75, while Battle Mountain fell 75 CENTS to $13.62 following Battle Mountain’s announcement to purchase Hemlo.

London metal markets saw higher prices for the four base metals, with nickel leading the charge. Following political tensions between China and Taiwan and the possibility of increased steel consumption for armaments, nickel added 19 CENTS to reach US$3.64 per lb. Copper was up 2 CENTS to US$1.18, and both lead (at US37 CENTS) and zinc (at US50 CENTS) gained 3 CENTS.

The metals and minerals subindex took on 95.59 points to close March 12 at 5,381.97, a gain of 1.8%. Diamond Fields Resources was the most actively traded base-metal issue, down $1.12 to $35.62. Inco was up $1.38, closing at $46.75, and Noranda was up $1.12 to $28. Rio Algom was off 75 CENTS to $25.25 and Cameco was down 25 CENTS to $75.

Among the juniors, Greenstone Resources announced that it had substantially increased its reserves at the Cerro Mojon deposit in Nicaragua, and that it had discovered several new mineralized occurrences in the surrounding area. Greenstone closed at $7.75, up $2, on a volume of 4.2 million shares.

Minorca Resources was down $1.12 to close at $4.75 in very heavy trading. The company had announced that it was buying an interest in the Busang property in Indonesia.

RFC Resource Finance Corporation was up 60 CENTS to $1.50 after Inmet announced it would sell its 73% interest in the company to Cominco. Inmet was unchanged at $11.12 and Cominco, which will bid $1.55 per share for the remaining shares of RFC, was up 12 CENTS to $30.12.

Ditem Exploration closed at $11, up $7.20 from the previous week, on rumors about a diamond find near Temiscamingue, Que. The company was not aware of any material change that would have had such an impact on the stock price.

Other junior companies with large price moves were Franc-Or Resources, which added 50 CENTS to close at $1.15, and Wilanour Resources, which was up 20 CENTS to close at 55 CENTS on news that Placer Dome may acquire the company. St. Genevieve Resources was down 29 CENTS to $2.43 in active trading. Sonora Gold was down 8 CENTS to finish at 21 CENTS, and Plexmar Resources lost 16 CENTS to end the trading period at 52 CENTS.