TSE down 5.5% in post-terror panic

The Toronto Stock Exchange, closing early Sept. 11 in the wake of the terrorist attacks in the United States, slumped drastically in the day’s financial panic to cap a week of losses in which the TSE 300 index fell 413.23 points to close at 7,048.80 — a loss of 5.5% of value, largely in line with stock markets in the rest of the world.

For a while it didn’t look like gold would serve as a safe haven, but when the markets closed on Sept. 10 enough panic money came buying to drive gold to US$287, up over US$15 from the London morning price. But by the next morning cooler heads had prevailed, and the yellow metal was back to US$279.50 per oz., still up US$7.80 over the report period.

Last-minute trading helped the TSE golds, though, sending the group up 350 points before the market closed. The gold and precious minerals index, which had been having a good week anyway, was 520.08 points higher at 5,250.72, a gain of 11% from the previous Tuesday’s close.

Placer Dome was the volume leader, seeing 6.2 million shares cross the floor and closing at $18.60 for a gain of $1.73. Barrick Gold was another hefty gainer, adding $3.35 to close at $27.70, and Kinross Gold was 28 higher at $1.55.

Other golds were stronger, with Agnico Eagle Mines, up $2.25 at $16.65, probably the star of the show. Another gold with a high market profile these days, Goldcorp, shot up $2.25 as well, to $18.75, and Meridian Gold added $1.33 to close at $15.50.

About the only loser among the gold group was Echo Bay Mines, which slid 53 to close at 90 after Franco-Nevada and Kinross announced they would accept Echo Bay shares in exchange for the principal owed on capital securities. The conversion of debt to shares would give Franco effective control of Echo Bay and dilute current common shareholdings to 28% of the company’s equity.

Off-index junior golds didn’t fare so well, although River Gold Mines was up a nickel at $1.05 and High River Gold added 11 to close at 49. Richmont Mines was actually lower by 21, closing at $1.44.

It was a measure of the panic surrounding the Trade Centre crashes that the metals and minerals group fell 391.27 points to close at 3,734.02, a drop of 9.5% that outstripped the broad market. The most active of the base metal stocks was the Teck Cominco B-series, which slid 59 and closed at $11.36, with 3.8 million shares on the move. The diversified miner plans to accept a take over bid for its Australian gold subsidiary, PacMin Mining. If successful, Teck will end up with a 12% stake in PacMin’s new owner, Australian miner Sons of Gwalia.

Alcan was blasted for a $7.15 loss, closing at $50.75, on a 3-million-share volume, and nickel and coal producer Sherritt International was down 68 at $4.15. Inco lost $1.90 to close at $24.05, rival Falconbridge closed $1.74 lower at $14.86, and Noranda slid 91 to $15.