STOCK MARKETS — HTSE golds zoom skyward with metal price — Base metals also better in generally buoyant market

Led by the banks and golds, the Toronto Stock Exchange 300 index rose 212.27 points during the report period Jan. 21-27, ending the week at 6721.72, or 3.26% over its level of the previous week.

Trading was heavy all week but intensified on Jan. 23 when the Bank of Montreal and Royal Bank of Canada announced their plans to merge to create the 22nd biggest bank in the world. The announcement caused a fervor on the floor, with 129.7 million shares passing hands by the end of the day.

Activity increased on Monday, climbing to 136.8 million shares traded, but simmered the next day when 129.8 million trades were recorded. The index gained 334.56 points in those three days, gaining back ground lost earlier in the trading period.

The Canadian dollar treaded uncharted waters during the report period, hitting its lowest level in history on Jan. 22. With the consensus being that the Bank of Canada will intervene by raising interest rates, the Loony continued to drop, to trade on the morning of Jan. 28 at US68.65cents , for a loss of 1.32 basis points. The mark and the yen were also up against the dollar, and the pound stayed even.

Gold bullion edged past the US$300-per-oz. mark on Jan. 26 but was unable to maintain the momentum, having a London fix of US$298.25 per oz. on the morning of Jan. 28. The price of the yellow metal, however, was a respectable $6.25 per oz. higher than in the previous week. Also gaining strength were silver, rising 22cents to US$6.02 per oz., and platinum, which ballooned to US$386.50 per oz., for a gain of $8.50.

The renewed appreciation in precious metals rubbed off on the TSE gold precious metals sub-index. The index soared 880.85 points, or 14.38%, to 7006.14. The biggest winner among the golds was Euro-Nevada Mining, which climbed $5.85 to $24. Sister company Franco-Nevada Mining came in a close second, rising $4.10 to $33.85. Barrick Gold, which traded heavily both in Toronto and on the New York exchange, continued to ride a wave, edging $3.80 higher to $29.10. Despite announcing a US$247-million writedown in the fourth quarter of 1997, Placer Dome rose $2.40 to $20.30.

Other companies gaining ground in the week were: Greenstone Resources, which leapt $2.50 to $8.80; Kinross Gold, which jumped $1 to $5.60; and TVX Gold, up 75cents to $4.45.

Cambior, which was $1.25 higher at $9.20, made final the details of its public offering and closed its deal to buy Barrick’s interest in the Doyon mine in northwestern Quebec.

Prices were mixed on the London Metal Exchange this week, with copper gaining 2cents to finish the week at US79cents per lb., aluminum 2cents higher at US69cents per lb. and both lead and zinc unchanged. Nickel, though, was mauled by the bears, losing 7cents to close at US$2.37 in the Jan. 28 ring.

The TSE minerals and metals sub-index rose 259.74 points, or 7.02%, to 3957.76. The most active issue was Westmin Resources, which added 10cents to close at $5.40 as Boliden declared victory in the takeover battle. About 89% of Westmin shares had been tendered to the Boliden bid. The Viking marauders themselves picked up 15cents to close at $2.95.

The big integrated miners all posted gains: Inco was $1.30 higher at $24.65, Cominco was up $1.60 at $23.50, Noranda rose $2.10 to $26.30, and Falconbridge tacked on $1.95 to finish at $19.15.

Among the winning juniors for the week, William Resources rebounded with the gold price, rising to 48cents from 27cents . Teddy Bear Valley Mines gained 10cents on low volume over the week to close at 25cents . Since the new year, normal operations have resumed at the Holloway mill following several months of repair work. The mill processes about two-thirds of the Holloway mine’s production.