STOCK MARKETS — Metal stocks lift TSE past the 7,000 level — Higher nickel price boosts Inco shares

Fueled by strong performances in the gold and base metal sectors, the Toronto Stock Exchange 300 composite index rose 189.68 points, or 2.7%, to end the report period of Feb. 25 to Mar. 3 at 7,137.93.

Trading volumes were heavy all week, particularly on Feb. 26 and 27, with more than 130 million shares crossing the floor on both days. Even the Canadian dollar joined in the rally, rising 8 basis points against its American counterpart to end the week at US70.35cents. The loonie also climbed on the pound and deutschmark, but was slightly down against the yen.

Gold enjoyed a robust week, leaping US$3.70 from the previous report period to trade on the London metal market at US$296 per oz. on Mar. 4. Silver edged 5cents ahead to US$6.39 per oz., while platinum climbed US$6.50 to US$386.50 per oz.

The higher metal prices reflected on the TSE’s gold and precious metals sub-index, which rose 51.80 points, or 1.3%, to finish at 4,098.79.

Similarly, senior gold producers all benefited from improved gold prices.

Leading the pack was Barrick Gold, jumping $1.85 to $27.05; followed by Placer Dome, up $1.15 to $17.75; and Cameco, up 15% to $41.90.

Euro-Nevada recovered almost all it lost in the previous report period, gaining $1.75 to close at $22.25. Sister company Franco-Nevada rose 10cents to $29.75.

Among the mid-tier producers, TVX Gold edged 40cents higher to $4.25, while Kinross Gold jumped 35cents to $5.15.

Improvements in base-metal prices gave a boost to the TSE’s metals and minerals sub-group, which rose 24.78 points, or 0.39%, to wrap the week up at 6,426.09. Copper reached US78cents per lb., a gain of 5cents, while nickel hit 24cents per lb., a gain of a penny. Both lead and zinc remained unchanged.

Inco appeared to benefit from nickel’s rise, soaring $1.70 higher to $26.40.

The issue gained the most of the senior base-metal producers. Noranda was a close second, however, ascending $1.40 to $27.90, while Teck B-series came in third, with a gain of $1.20 to $20. Also up this week were Rio Algom, up 85cents to $27 and Falconbridge, up 35cents to $19.30; and Cominco, up 20cents to $24.

Record fourth-quarter earnings, which helped the company achieve a seventh year of consecutive improved earnings, didn’t seem to be enough to keep Potash Corporation of Saskatchewan on its recent tear. The company dropped $2.05 to $128.20.

Despite more positive results from the El Salvador project in Mexico, part-owner Western Copper Holdings fell 45cents to $9.20. The company holds a 45% interest in the project, which is operated by 55%-owner Teck. The partners recently released assay results from an addition four holes that were drilled in the San Nicolas massive sulphide zone. All four holes intersected wide zones of zinc, copper, gold and silver mineralization. Two drill rigs are now delineating the deposit on 100-metre centres. Reserves, along with metallurgical studies, are expected to be made public in the weeks ahead.

The news also did not play well with nearby explorer Aurado Exploration.

Aurado, which is acquiring a 49% interest in two El Salvador-area properties from Cominco, has ridden on the coattails of San Nicolas for the past couple of weeks, but not this report period: the issue dropped 3cents and closed at 41cents.

Also down this week was Ursa Major International, which lost 8cents to finish at 17cents. Ursa, which is focusing its exploration efforts in countries formerly part of the Soviet Union, recently reported a net loss of $227,165 (or 5cents per share) for the nine months ended Dec. 31. This compares with a net loss of $81,913 (2cents per share) in the corresponding period of 1996.