STOCK MARKETS — Golds give further push to TSE 300 composite index — Junior issues add spark to Toronto market; precious metals strengthen

Fuelled by strong performances in the gold and base metal markets, the Toronto Stock Exchange 300 composite index gained a hefty 119.28 points, or 1.9%, to finish the report period ended May 13 at 6,249.24.

Despite a noticeable decline on the final day of trading, the gold and precious metals sub-group turned in a strong performance overall. The group rose 585.50 points, or 6.6%, to close the week at 9,494.63. Gold bullion continued to increase in value, with the yellow metal fixed on May 14 at US$349.00, up $8.35. The big news in metal prices, however, was the widening in price gap between the yellow metal and platinum. The latter rose $19.25, finishing at US$392.25 per oz. Silver also increased in value, for a second week in a row; it climbed 15 cents to close at US$4.87.

The Canadian dollar lost some ground this week against its American counterpart, then almost regained its position of a week before, with a mid-day rate on May 14 of US72.19. The Japanese yen and all major European currencies ganged up on the Canadian dollar; the British pound led the way, with an increase of more than 3 cents in the wake of the landslide election victory of the Labour party.

A chapter in the never-ending Busang story came to end when the TSE delisted Bre-X Minerals on the grounds that the company “no longer meets its required listing standards.” On that same day, the issue was also halted from trading on the Alberta and Montreal exchanges, and, soon afterwards, the stock was delisted on the Alberta exchange. These events fell on the heels of NASDAQ’s decision a day earlier to suspend trading of Bre-X. Two days later, the company’s upper management voluntarily delisted its stock from the exchange.

Also suspended from trading was parent company Bresea Resources, which only traded on the Montreal exchange, and affiliate Bro-X Minerals. Bre-X ended its public trading career as it started — as a penny stock.

Investor confidence continued to focus on the mid-Tier and senior producers.

Euro-Nevada climbed $3.90 to $43.15, while Barrick Gold rose $1.80, finishing at $34.25. Placer Dome appears to have rebounded from losses suffered a few weeks ago, with the issue rising $1.20 over the report period, closing at $25.70. In late April, a Venezuelan Supreme Court decision was touted by Crystallex Resources as supportive of its entitlement to the legal rights to the La Cristina deposit. With its announcement last week that it had doubled reserves at four Central-American properties, Greenstone gained 25, to close at $13.35.

Investor excitement over the prospect of diamond mining in northern Alberta continued this week, and two of the leading explorers — partners Pure Gold Resources and Ashton Mining of Canada — were among the TSE volume leaders.

Pure Gold shares rose 6, to 48, while Ashton shares were up 80, reaching $6.70.

The other junior gold to experience a price jump was Queenstake, which climbed $1.10 to $2.90, after news that a Carlin-Type gold strike had been discovered in Peru.

Strong base metal prices gave a push to the TSE’s metals and minerals sub-group. The sub-index was up 132.07 points to 5,502.39, for a gain of 2.5%. Nickel gathered more momentum this week, rising a dime to close on May 14 at US$3.45 per lb. Both copper and zinc were up 2, to finish at US$1.12 and US59 cents per lb., respectively. Lead suffered a minor drawback, losing a penny, to close at US27 cents per lb.

Nickel’s strong prices proved fruitful for Inco, which saw another dollar added to its share value. The issue finished the week at $46.75. Also benefiting from strong base metal prices were Noranda, which rose $1.55 to $31.60, and Falconbridge, which climbed $1.15 to $31. Teck B series shares closed the week at $30.75.