U.S. Markets – May 26 -June 1

The most important economic event south of the border during the May 26-June 1 reporting period was the momentous bankruptcy of General Motors. Analysts have been expecting this for some time, and a number of observers expressed hopes that the company could emerge from bankruptcy protection within the next few months, but there could be production disruptions if suppliers stop shipping parts.

Equity markets shrugged off the bad news, with the Dow Jones Industrial Average up 444 points, or 5.4%, to 8,721, after Cisco Systems and Travelers Cos. replaced Citigroup and GM on the DJIA. The S&P 500 index gained 56 points, or 6.3%, to 943, and the Nasdaq added 137 points, or 8.1%, to 1,829.

The rally was underpinned by signs that the global economy is starting to improve, stronger U. S. and China manufacturing data, and a rise in U. S. consumer confidence.

Precious metal issues were up as gold and silver prices rose on continued weakness in the U. S. dollar, with the silver price reaching its highest level since August. The Amex Gold Bugs index advanced 9 points, or 2.3%, to 388, and the Philadelphia Gold and Silver index climbed 6 points, or 4.2%, to 158.

Silver miner Coeur D’Alene Mines moved up US20¢ at US$14.20 after completing a one-for-ten reverse stock split.

Base metal prices rose on the stronger economic outlook, boosting miners’ stock prices. Shares in diversified multinational miners were up, with BHP Billiton adding US$6.70 to US$59.27, Rio Tinto gaining US$22.80 to US$196.64, and Vale rising US$1.72 to US$20.44 after terminating its buyback program for common shares and class A preferred shares. Freeport-McMoRan Copper & Gold moved up US$9.78 to US$58.12 as copper prices advanced to a seven-month high.

Aluminum maker Alcoa firmed US97¢ to US$9.83 even though aluminum prices were essentially flat on record high inventories.

The coal sector rallied on strong demand from China and India, with China’s imports reaching a record 9.2 million tonnes in April. Gainers included Alpha Natural Resources and Foundation Coal Holdings, which plan to merge.

U. S. most active issues
	VOLUME	WEEK
	(000s) HIGH	LOW	CLOSE	CHANGE
Alcoa* AA	171429 9.98	8.70	9.83	+ 0.97
Freeport McMo*FCX	80564 59.45	46.58	58.12	+ 9.78
Goldcorp* GG	58738 40.82	35.78	36.91	-0.49
Barrick Gold* ABX	56540 38.96	35.94	37.04	-0.76
Golden Eagle* MYNG	43012 0.00	1.0E8	0.00	0.00
Teck B* TCK	41540 17.37	13.52	17.15	+ 2.95
Massey Energy* MEE	39953 25.08	18.70	24.74	+ 5.04
Newmont Mng* NEM	39855 49.84	45.29	47.99	+ 0.95
Kinross Gold* KGC	39834 20.67	18.25	20.18	+ 1.00
PotashCSask* POT	38395121.36	112.10	117.06	+ 2.56

U. S. greatest percentage change
		VOLUME	WEEK
		(000s)	HIGH	LOW	CLOSE	CHANGE
Bullion Monar*	BULM	764	0.72	0.28	0.58	+ 70.5
Radius Gold*	RDUFF	509	0.27	0.15	0.23	+ 64.2
North Am En P*	NOA	516	8.17	4.75	7.65	+ 60.0
Miranda Gold*	MRDDF	307	0.49	0.27	0.41	+ 57.6
Silver Dragon*	SDRG	2038	0.14	0.08	0.14	+ 55.5
Commerce Grp*	CGCO	20	0.18	0.06	0.17	+ 54.5
General Moly*	GMO	6775	2.65	1.67	2.64	+ 52.6
Colombia Gldf*	CGDF	1195	0.07	0.05	0.06	+ 50.0
Industrl Mnls*	IDSM	420	0.03	0.02	0.03	+ 50.0
Banro Res*	BAA	1289	2.20	1.34	2.02	+ 47.4
AmMex Gold*	AMXG	52	0.03	0.02	0.02	-33.3
Global Gold*	GBGD	111	0.12	0.11	0.12	-33.3
Golden Phoen*	GPXM	3396	0.04	0.03	0.03	-25.0
Strata O&G*	SOIGF	273	0.45	0.35	0.38	-13.6
PlatinumGpM*	PLG	56	1.47	1.18	1.28	-13.5
Tombstone Exp*	TMBXF	543	0.09	0.07	0.08	-11.1
Caledonia Mng*	CALVF	2219	0.09	0.07	0.08	-11.1
Elray Res*	ELRA	350	0.41	0.29	0.36	-10.0
Crystallex In*	KRY	6871	0.30	0.25	0.27	-10.0
Richmont Mine*	RIC	948	4.30	3.79	3.85	-8.3

U. S. greatest value change
WEEK
	VOLUME	CLOSE	CHANGE
Rio Tinto* RTP	4620389	196.64	+ 22.80
Freeport McMo* FCX	80563611	58.12	+ 9.78
BHP Billi-BHP* BHP	26496380	59.27	+ 6.70
BHP Billi-BBL* BBL	7959101	51.17	+ 6.22
ASA (Bermuda)* ASA	367591	69.70	+ 6.12
CONSOL Energy* CNX	17800785	43.57	+ 5.99
Cliffs Nat Rs* CLF	31381629	29.01	+ 5.87
Peabody Enrgy* BTU	33597939	35.82	+ 5.13
Massey Energy* MEE	39953449	24.74	+ 5.04
Foundatn Coal* FCL	10920357	31.50	+ 4.17
Barrick Gold* ABX	56540293	37.04	-0.76
Agrium* AGU	3420100	49.70	-0.69
Goldcorp* GG	58737608	36.91	-0.49
Ivanhoe Mines* IVN	11570999	5.36	-0.47
Richmont Mine* RIC	948118	3.85	-0.35
Seabridge Gld* SA	1434058	28.42	-0.30
Corriente Rs* ETQ	755067	7.01	-0.28
DRDGOLD* DROOY	1052525	10.03	-0.25
PlatinumGpM* PLG	56300	1.28	-0.20
Vista Gold* VGZ	1354444	2.49	-0.11