Toronto Stock Exchange – Jan. 20-26

The S&P/TSX composite index lost 185 points, or 2.1%, to 8,657 during the Jan. 20-26 trading session, with the Capped Metals and Mining index dropping 2 points, or 0.8%, to 265; and the Capped Materials index gaining 14 points, or 5.9%, to 249.

After the trading session, the federal government released its budget, which included deficit spending and tax cuts to stimulate the economy.

The Conference Board of Canada projects that Canada’s economy will contract for the first three quarters, resulting in a 0.5% decline in real gross domestic product this year, and pushing unemployment to 8% by year-end. It forecasts a 1.7% contraction in the U. S., but the economic stimulus package announced by U. S. President Barack Obama’s administration should create a rebound in growth during the second half of 2010, leading to an expansion of U. S. GDP by 2.2% next year. “As key U. S. export markets recover,” says the Conference Board, “Canada’s real GDP is forecast to rebound to growth of 3.6% in 2010.”

Meanwhile, the International Monetary Fund has cut back its forecast for global economic growth in 2009 to 1-1.5%.

TD Bank says that coal prices followed crude oil prices, rising by 8% on the week to a two-month high on speculation that the U. S. economic stimulus package will jump-start the economy.

Aluminum prices fell by 8% on the week on weak U. S. economic data and high inventories, but precious metal prices rose, with silver gaining 6% and gold adding 4%.

With the gold price pushing past US$900 per oz., it was little wonder that the gold sector continued to rally during the trading session. Barrick Gold was up $4.77 to $46.51, and Goldcorp gained $2.88 to $35.42. At presstime, Barrick commanded a valuation of over $40 billion on the TSX.

Eldorado Gold added 87¢ to close at $9.82 after reporting gold production of 308,000 oz. in 2008, and setting its sights on producing 325,000 oz. this year and 400,000 oz. next year.

NovaGold Resources jumped $1.13 to $3.23 after raising $75 million in a private placement, and announcing that a lender elected to convert a bridge loan to shares.

The Ontario Securities Commission ruled that HudBay Minerals shareholders are entitled to vote on the company’s proposed takeover of Lundin Mining. HudBay shares rose $1.03 to $4.62, while Lundin shares fell 27¢ to 95¢.

Silver issues were generally up on strength in silver prices, with Great Panther Resources adding 10¢ to 38¢; Silver Wheaton gaining 87¢ to $8.53; Silver Standard Resources up 73¢ to $23.62; and Silvercorp climbing 21¢ to $2.64.

Coalcorp, which has coal mines in Colombia, fell 18¢ to 20¢ after seeking to declare a coal supply contract invalid.

TSX most active issues
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Uranium One	UUU	51196	2.31	1.86	2.07	-0.25
Kinross Gold	K	40823	24.66	21.07	21.48	-0.52
Lundin Mng	LUN	40207	1.25	0.83	0.95	-0.27
Yamana Gold	YRI	34037	10.23	8.37	9.87	+ 1.37
Teck B	TCKB	32429	6.06	5.10	5.69	-0.13
Barrick Gold	ABX	30014	49.87	42.87	46.51	+ 4.77
Eldorado Gold	ELD	27704	10.34	8.89	9.82	+ 0.87
Goldcorp	G	26978	37.48	32.36	35.42	+ 2.88
HoriznsGBull	HGU	23934	14.53	11.25	13.05	+ 1.89
HudBay Minls	HBM	21845	4.80	3.39	4.62	+ 1.03

TSX greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Tiger Res	TGS	14	0.10	0.10	0.10	+400.0
PC Gold	PKL	68	0.50	0.28	0.50	+117.3
Atlanta Gold	ATG	1287	0.41	0.20	0.35	+ 84.2
OceanaGold	OGC	2950	0.62	0.25	0.39	+ 69.5
New Dawn Mng	ND	18	0.40	0.25	0.40	+ 66.6
Niocan Inc	NIO	33	0.25	0.18	0.25	+ 56.2
NovaGold Res	NG	17675	3.36	1.81	3.23	+ 53.8
Gitennes Expl	GIT	215	0.06	0.05	0.06	+ 50.0
BioteQ Env	BQE	456	0.65	0.41	0.61	+ 45.2
Vista Gold	VGZ	41	2.44	1.75	2.44	+ 44.3
Coalcorp Mng	CCJ	591	0.38	0.17	0.20	-47.3
Bannerman Res	BAN	41	0.62	0.50	0.50	-27.5
Khan Res	KRI	1982	0.44	0.34	0.36	-23.4
Freegold Vent	ITF	570	0.27	0.19	0.23	-23.3
Avalon Vent	AVL	125	0.82	0.61	0.63	-23.1
North Am En Pa	NOA	58	4.13	2.71	2.78	-22.7
Lundin Mng	LUN	40207	1.25	0.83	0.95	-22.1
Moly Mines	MOL	627	0.26	0.20	0.22	-21.4
BRC DiamondCr	BCD	93	0.19	0.14	0.16	-20.0
Diamond Fields	DFI	58	0.05	0.04	0.04	-20.0

TSX greatest value change
WEEK
		VOLUME	CLOSE	CHANGE
Royal Gold	RGL	29524	56.43	+ 6.43
Newmont Mng	NMC	126526	53.31	+ 5.99
Potash Cp Sask	POT	9889677	94.15	+ 4.90
Barrick Gold	ABX	30014238	46.51	+ 4.77
Agnico-Eagle	AEM	8018690	66.75	+ 4.75
Franco-Nevada	FNV	3793511	24.40	+ 4.73
Goldcorp	G	26977682	35.42	+ 2.88
Central Gold-T	GTU_U	61104	45.00	+ 2.46
Horizns G Bull	HGU	23933883	13.05	+ 1.89
Seabridge Gold	SEA	55798	17.32	+ 1.82
Russell Metals	RUS	1479765	18.70	-2.32
Horizns G Bear	HGD	7010550	9.51	-2.03
Teck A	TCKA	21908	10.26	-1.49
Cameco Corp	CCO	5432425	20.45	-1.30
Agrium	AGU	5986862	41.20	-1.30
North Am En Pa	NOA	58423	2.78	-0.82
First Quantum	FM	3071645	22.91	-0.77
Timminco	TIM	1993485	3.85	-0.70
Harry Winston	HW	512618	4.75	-0.62
Labdr I-Ore Ro	LIF_U	346043	21.60	-0.57