Trading Summary (May 15, 2001)

Investors got what they wanted, but that didn’t help the Toronto Stock Exchange on Tuesday. The U.S. Federal Reserve cut interest rates by a half a percentage point for the fifth time this year. Immediately after the cut, the TSE’s 300 composite index bounced, but it failed to hold on to the gains. A late-day rally saw the TSE 300 end at 8,041.7 — 31.7 points higher than its previous close.

The Metals & Minerals subindex put in one of the best performances, rising 92.48 points, or nearly 2%, to 4,843.81. Making waves in the group was Alcan, which gained $1.60 to $69.70 on more than 3.8 million shares, placing it on the TSE’s most active list. The company says it is keeping an eye on reservoir levels in British Columbia, where spring runoff is late to arrive. Further cutbacks in aluminum production may be necessary if the situation doesn’t improve. An update is expected in June or July.

Falconbridge fell a nickel to $18.10 on light volume and Boliden rose 2 to 87. Falconbridge says it still expects to complete a deal with Boliden for the company’s stake in two copper projects in Chile. Reports are circulating that Boliden, which is negotiating a restructuring of its credit facilities and a possible equity offering, may pull out of the deal. Falco issued a statement reaffirming its contractual rights to purchase the projects.

The TSE’s gold issues slid 18.17 points to close at 4,885.84. Most active among them was Barrick Gold, which fell 35 to$26.50 on volume of 3.3 million shares. Placer Dome managed to gain 20 to $17.25 on 1.3 million shares. Kinross Gold saw 1 million shares cross the floor. The issue was unchanged at 95.

Late-day bargain hunters helped Canada’s junior exchange erase early losses. The Canadian Venture Exchange tacked on 14.31 points, or 0.5%, to finish the day at 3,181.18. The Mining Index ended the day virtually unchanged, down 0.54 of a point to close at 6,611.86.

Inca Pacific attracted investor attention, moving up 2 to 36 on more than 1.2 million shares. The junior’s joint-venture partner has launched a US$3-million exploration program on the promising Magistral copper-molybdenum property in Peru.

A nice percentage mover, Raymor Industries jumped 15 to end the day at 55 on 107,000 shares. The company has announced plans to build an industrial-scale pilot plant to produce high-purity lithium metal.

Starfire Minerals lost a penny to close at 10 on 301,600 shares. The junior holds ground in the Wells-Barkerville area of north-central B.C., as well as the Langmuir South property near Timmins, Ont.

Shares in Pacific North West Capital continued to drift lower following the assay results from the latest batch of holes on the River Valley platinum-palladium property in Ontario. Stock in the Harry Barr-led company lost 3 to close at 87 on a moderate 64,100 shares.