STOCK MARKET — Resource stocks drag TSE down as gold price atrophies — Canadian dollar loses ground against American greenback and most other major currencies

The Toronto Stock Exchange’s TSE 300 composite index fell 41.38 points to 6,490.96 between June 18 and 24, with transportation stocks and conglomerates showing strength, and the resource sectors — forest products, base metals and gold — dragging the market down. It was a period of unremitting doom for The Northern Miner’s sluggos, with mining and media stocks among the worst performers on the exchange. Daily trading volumes were moderate, generally reaching about 80 million shares.

The Canadian dollar lost ground against the U.S. dollar during the same period, reaching US71.69 cents at noon on June 25 for a loss of 41 basis points over the five trading days. In currency markets, the prevailing sentiment that the U.S. Federal Reserve would shortly tighten U.S. interest rates contributed to the strength in the greenback. The Loony was also lower against most of the European currencies, yet stronger against the Japanese yen.

The floor went out from under gold as well, with the yellow metal posting a $3.35 loss on the London bullion markets over the report period. Gold was fixed at US$338.70 per oz. on the morning of June 25, having reached a nadir of US$336.95 the day before. Silver was relatively steady, backing away only 3 cents to finish the period at US$4.77. Supply worries continued to haunt the platinum market, with the London fix rising $3 to US$414 per oz.; stablemate palladium, which had gyrated even more wildly in past weeks, was at US$193, up $1.

The TSE’s gold and precious minerals sub-group responded to the weakness in the bullion markets by diving 613.91 points, or 6.8% of value, to close at 8467.30 on June 24. As usual, the big boys were the most actively traded: Barrick Gold saw its stock slide $3.10 to $30.45 and Placer Dome shed $2 to close at $22.90. Close behind was Cambior, which was off $1.15 to $16.35.

Other hits were taken by Kinross Gold, which was down $1.55 at $6.10, TVX Gold, down 55 cents to $7.65, and Teck B, down $2.10 to $27.75.

Base metals were generally lower on the London Metal Exchange, with copper shaved by 6 cents to finish the June 25 morning ring at US$1.16 per lb.

Nickel was also 6 cents lower at US$3.18 per lb. Despite the clouds over the other metals, zinc prices continued to find the silver lining, rising 1 cents to US62 cents per lb.

The big base metal miners on the TSE suffered (though not as much as the gold issues). Inco was the volume leader, falling $2.05 to $42.20. Cominco plummetted $3.85 to $36.15, Falconbridge lost $2.10 to close at $27.55, and Noranda was $1.75 lower at $29.60.

Among the mid-Tier base metal producers, Westmin fell 55 cents to $6.45 and Aur Resources was down 75 cents at $6.40.

LionOre Mining was up 20 cents on a volume of 5.5 million shares, closing at $4.60. The company reported a 37.6-Metre drill intersection grading 2.55% nickel from its Maggie Hays project in Western Australia. Also headed up was Andean explorer Corriente Resources, which added $1.05 to close at $3.90.

Montreal-listed Yorbeau Resources, which announced it was acquiring the Augmitto and QC gold properties in northwestern Quebec, added 7 cents to close at 27 cents. Another Montreal listing with a large price move was New Goldcore Ventures, which climbed 10 cents to close at 25 cents. The company, whose principal asset is the Clinton copper property in the Eastern Townships of Quebec, had no news to release.

The Crystallex saga continued, with the company’s stock closing at $6.75 for a gain of 50 cents. Crystallex, which is engaged in a legal battle for a piece of Placer Dome’s Las Cristinas property in Venezuela, announced it had obtained a listing on the American Stock Exchange.