TORONTO STOCK EXCHANGE – OCT. 14-20

Sliding commodity prices and fears of a recession are haunting the Canadian economy: A new poll by the Conference Board of Canada found that consumer confidence fell this month to its lowest level since 1982, when the country was in a recession. And as the global economy continues to slow, weaker international demand will mean less income for Canadian exporters, and commodity prices that are likely to fall even further. At presstime, the Bank of Canada announced it had cut its key interest rate by a quarter-point to 2.25%. But the cut was less than expected and is unlikely to calm the panic that has seized Canada’s equity markets.

In a commentary on its decision to cut the overnight rate, the central bank said lower commodity prices “will also dampen the outlook, working through a deterioration in Canada’s terms of trade to moderate domestic demand growth. The market tightening in Canadian credit conditions in recent weeks will restrain business and housing investment.”

For all the gloomy news, however, the TSX Composite Index actually managed to climb 295.74 points, or 2.97%, to 10,251.4 during the Oct. 14-20 trading session. The Capped Metals and Mining Index inched up 13.82 points, or 3.44%, to close the session at 415.75.

By contrast, The TSX Global Gold Index fell 21.14 points, or 9.65%, to close at 218.94. The price of gold fluctuated between US$834.60 per oz. on Oct. 14 and US$795 on Oct. 20. With the exception of Newmont Mining, which climbed $2.09 to $36.09 on no news, few gold companies were spared. Barrick Gold dropped $2.89 to close at $32.33, while Goldcorp lost $2.92 to finish at $26.75 and Seabridge Gold fell $2.66 to $11.29.

On other fronts, Blue Note Mining closed the week at 1 per share on news that low metal prices had forced it to close its Caribou and Restigouche lead-zinc mines in Bathurst, N. S. The mines had been in commercial production for less than a year.

Teck shares were up, following news that it had entered into an agreement to sell about 27.6 million units it holds in Fording Canadian Coal Trust to a Canadian chartered bank. Following the sale, Teck will still own about 1.85 million Fording units, which it has agreed to sell to an affiliate of the Ontario Teachers Pension Plan Board, under a separate agreement announced in July. The net proceeds from the two transactions will be roughly US$2.4 billion, Teck expects. Fording Canadian Coal, meanwhile, proved to be the biggest gainer during the session, moving up $10.22 over the trading session to $95.22 per share.

Forsys Metals was up $2.13 to $4.64 on news that it was in exclusive negotiations to sell the company to an undisclosed buyer and has retained CIBC World Markets as its financial adviser. Forsys is an emerging uranium producer with 100% ownership in the Valencia uranium deposit in Namibia.

TSX most active issues
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Yamana Gold	YRI	51001	7.41	5.15	6.20	-0.26
Uranium One	UUU	39510	1.28	0.80	1.13	+ 0.22
Barrick Gold	ABX	33112	35.81	27.31	32.33	-2.89
Breakwater Res	BWR	32595	0.14	0.09	0.12	0.00
Goldcorp	G	29977	30.62	22.13	26.75	-2.92
Kinross Gold	K	29883	17.23	12.15	14.28	-0.74
Teck B	TCKB	29828	24.00	14.16	18.75	+ 2.39
Blue Note Mng	BN	29304	0.03	0.01	0.01	0.00
Eastern Platin	ELR	26488	0.67	0.38	0.59	+ 0.10
High River Gol	HRG	24112	0.38	0.10	0.16	-0.18

TSX greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Bannerman Res	BAN	158	0.28	0.15	0.28	+100.0
Forsys Metals	FSY	7138	4.84	3.53	4.64	+ 84.8
Klondex Mns	KDX	520	0.60	0.37	0.55	+ 77.4
Atlanta Gold	ATG	65	0.36	0.26	0.35	+ 75.0
MMXMineMet	XMM	15	3.00	2.25	3.00	+ 72.4
Linear Metals	LRM	213	0.15	0.10	0.15	+ 66.6
Crosshair E&Mg	CXX	752	0.20	0.12	0.19	+ 58.3
Front St Res P	FRE	126	4.51	3.10	4.08	+ 53.9
Birch Mountn	BMD	464	0.09	0.05	0.06	+ 50.0
Contl Precious	CZQ	360	0.47	0.27	0.44	+ 46.6
Sterling Mng	SMQ	44	0.16	0.05	0.06	-57.1
Diamond Fields	DFI	159	0.14	0.07	0.07	-56.2
Intl Nickel Vn	INV	311	0.25	0.11	0.11	-54.1
High River Gol	HRG	24112	0.38	0.10	0.16	-52.9
Central Sun Mg	CSM	1163	0.50	0.19	0.20	-50.0
Yukon Gold	YK	415	0.07	0.05	0.05	-44.4
Delta Uran	DUR	447	0.18	0.11	0.11	-42.1
Platmin	PPN	209	2.55	1.26	1.30	-40.6
Nevsun Res	NSU	4069	0.85	0.37	0.42	-40.0
Cross Lake Mnr	CRN	3835	0.09	0.02	0.03	-40.0

TSX greatest value change
WEEK
		VOLUME	CLOSE	CHANGE
Fording C C T	FDG_U	9429121	95.22	+ 10.22
First Quantum	FM	4765815	28.83	+ 6.82
Agrium	AGU	13809017	48.17	+ 6.42
Cameco Corp	CCO	12488390	19.14	+ 3.14
Teck A	TCKA	53644	24.00	+ 2.50
Teck B	TCKB	29827897	18.75	+ 2.39
Forsys Metals	FSY	7138374	4.64	+ 2.13
Newmont Mng	NMC	770043	36.09	+ 2.09
Thompson Creek	TCM	8289582	8.50	+ 1.88
Russell Metals	RUS	2405197	20.95	+ 1.73
Central Gold-T	GTU_U	68285	37.67	-7.83
IShCOMEXGTr	IGT	107842	93.58	-6.42
Potash Cp Sask	POT	16548803	97.45	-4.93
Goldcorp	G	29977339	26.75	-2.92
Barrick Gold	ABX	33111968	32.33	-2.89
Seabridge Gold	SEA	124254	11.29	-2.66
Horizns G Bull	HGU	16608899	8.49	-1.71
Central Fund	CEFA	1115465	11.18	-1.28
Detour Gold	DGC	1887897	5.15	-0.98
DundeePrecMt	DPM	650872	3.29	-0.96