TSX plummets 4.4% over June 28-July 2 period

Investors fearing a so-called “double dip” recession were given more reason to worry over the June 28-July 2 trading period as the TSX Composite Index plunged 4.4%, or 511.79 points, to 11,196.06 points.

The benchmark index has fallen a total of 4.7% since the beginning of the year and mining stocks have been hard hit.

The Capped Metals and Mining index fell 10.5%, or 93.05 points, to 795.88 points while the Global Gold Index slipped 5.9%, or 22.71 points, to close the week at 365.02.

Economists have been slashing growth forecasts around the world, most notably in China and the United States, and markets everywhere have been hard hit even though growth is expected, just at a slower pace.

Potash Corp. of Saskatchewan, once the market darling, was the top loser by value over the period, dropping$7.35 per share to close at $90.91, hitting a new 52-week low.

First Quantum Minerals shares also took a significant hit, falling $5.18 to $54.22, nearing its June 8 low of $48.20 and a long way off from the $100.32 per share high the stock reached just six months ago. The government in the Democratic Republic of Cong revoked First Quantum’s mining permits for its Kolwezi copper-cobalt project with the rights given to another company closely connected to DRC president Jospeh Kabila. Canadian Prime Minister Stephen Harper said he would take up the issue during the Group of 20 summit in Toronto with representatives from the World Bank and the International Monetary Fund.
Other Canadian heavyweights, Teck Resources, Barrick Gold, Agnico-Eagle Mines and Goldcrop, also saw significant drops over the period.

On a percentage basis, Katanga Mining, another company with a copper-cobalt project in the DRC, was one of the top losers, falling 28.8% to 64¢ per share.

China-focused Jinshan Gold Mines fell 20% to $3.12 per share on no news and coal miners Grande Cache Coal and Western Coal fell 19.5% and 19.2%, respectively, on concerns over world demand for coal and another recession in the midst. Grand Caches shares closed at $5.15 while Western Coal shares closed at $3.87.

Of course, not every stock dropped over the week.. Seafloor copper and gold explorer Nautilus Minerals shares rose 26¢ to $1.76 on no news and Globex Mining shares rose 20¢ to $1.64 after a steady stream of news for its properties.

Globex, known for holding a large number of properties and then optioning them out to other explorers, announced some drill results from its Parbec project in Malarctic, Que., an option agreement for its Bell Mountain gold project in Nevada and , an option agreement and a deal for it Mooseland gold project in Nova Scotia.

Although not a miner, the Central Gold Trust made the list for the greatest value change, rising 22¢ to $50.6 per share as investors likely sought the safe haven metal.