STOCK MARKETS — Base metals head up in buoyant market — TSE indexes make new highs as base metals jump 7%

The base metal stocks were the stars of the market as the Toronto Stock Exchange reached a new all-time high on Mar. 10. Over the five trading days Mar. 4-10, the TSE 300 composite index climbed 158 points to finish at 7,296, for a gain of 2.2%, and the metals and minerals subindex added 291 points to close at 4,390, for a gain of 7.1%. Transportation and utilities also showed strength in a generally upbeat market.

The Canadian dollar shot up 72 basis points to trade at US71.04cents at noon on Mar. 11. It was also stronger against the major European currencies and the yen.

The bullish atmosphere in the base metals sub-group came partly from stronger prices for most base metals: nickel was up 8cents to US$2.45 per lb. on the London Metal Exchange, and copper was 3cents higher at US81cents. The mood also fed on aluminum giant Alcoa’s takeover of Alumax, which pushed sub-index heavyweight Alcan higher.

Inco was $2.50 higher at $28.90 and was the most heavily traded of the base metal stocks, with 6.7 million shares changing hands. Boliden installment receipts added 20cents to close at $4.05, also in heavy trading, while the common shares were 45cents higher at $11.95. Noranda was up 95cents at $28.85 and Falconbridge rose $2.45 to finish the period at $21.75. Cominco was also strong, rising $3.15 to $27.15.

Among the smaller companies on the listing, Aur Resources picked up 65cents to close at $3.95 and Inmet Mining was 30cents higher at $5.70.

Gold was slightly weaker, falling 75cents over the trading period as the London bullion dealers set the price at US$295.25 on the morning of Mar. 11.

Silver, volatile as ever, was off 8cents to US$6.31. The real action was in the platinum group, where prices of the minor metals have been rising steeply over the past weeks. Among the big boys, platinum was fixed at US$393, up $6.50, and palladium was fixed at US$256, up $17. Rhodium has been the strongest of the minor platinoids, with mid-market trading around US$535 per oz.; iridium, now at US$345 per oz., has also been strong.

The TSE gold and precious minerals subgroup, while not as bullish as the base metals, still added a healthy 293 points to finish the report period 4.6% higher at 6,719. Barrick Gold, up $2.10 at $29.15, was the most active issue in the group, seeing 5.1 million shares move. Placer Dome was next busiest, and rose $1.20 to finish at $18.95. TVX Gold, up 45cents to $4.70, and Kinross Gold, unchanged at $5.15, were also on the most-active list.

Rayrock Yellowknife Resources was 60cents higher at $5.50, but affiliate Minera Rayrock was 13cents lower at 12cents in very light trading. Rayrock has been trying to design a scheme to merge with Minera Rayrock and another affiliate, Inter-Rock Gold, which was 5cents higher at 32cents. Inter-Rock and Minera shareholders have approved the merger but minority shareholders in Rayrock have so far turned down plans to merge the companies.

Montreal-listed Lexam Explorations had a bad week, dropping 66cents to close at 94cents. The company released results of a drill program on properties held in joint venture with Platinova in Greenland. The companies were drill-testing aeromagnetic anomalies for kimberlitic intrusions, but intersected only some kimberlite dyke material in one of seven drill holes.

Platinova was also lower, falling 22cents to $1.03.

And, as usual, Crystallex International was in the news, following publication of a research report by short-position specialists Asensio & Company in New York. The company, whose principal asset is participation in a lawsuit it says may give it an interest in Placer Dome’s Las Cristinas property in Venezuela, fell $3.35 to $7.35 when Asensio challenged a number of statements Crystallex had made alleging title to Las Cristinas.