Vancouver Stock Exchange Profit-taking slows market climb

This is one heck of a bull market. Rising gold and silver prices have propelled many stocks into orbit but the gravitational pull of higher interest rates has started to drag stocks down. Profit taking has entered the picture and by presstime the VSE index was off 31.6 points to 1954.3. Even so, that’s still 60 points ahead of last week.

With the US dollar on a free-fall, the federal reserve has been defending the greenback with higher interest rates which predictably are now trending upward here as well. That’s bad news for stock markets and also for gold which is a good hedge against inflation and currency fluctuations.

Among the more active issues today was Balsam Resources which was 30 cents stronger at 76 cents . The company is raising money for a property it has in the Bridge River area of B.C. Tashota-Nipigon climbed 19 cents to $1.49 and Hambro Resources was 17 cents stronger at 65 cents . The former has a gold property near Zeballos on Vancouver Island which it will be exploring this year. Muscocho Explorations will be funding the work through a private placement. A few weeks ago Hambro announced it was delinquent on filing its financial statements. Maybe its caught up.

There were a lot of high flyers over our report period including Brohm Resources which tacked on $3.38 to $13.63 The company recently concluded an agreement with Kerr Addison and Ventures Trident, an affiliate of Brohm, to purchase 32% interest in MFC Mining. MFC is a major shareholder in Blackdome Mining. International Phoenix, which is headed by Murray Pezim and includes a few of his Vancouver cronies, was the volume leader with a turnout of almost 1.9 million shares. It was up 95 cents to $1.88.

International Petroleum, an oil and gas company headed up by Adolf Lundin with assets in the middle east, tacked on $2.75 to $8.50. Grandview Resources, which has a producting gold heap leach operation near Columbia, Calif., posted a $1.87 increase to $15.00 while another heap leach producer, Galactic Resources, ended the week $1.38 better at $11.63.

Breakwater Resources, which has announced plans to take over Novamin Inc. (N.M., Apr 13/87), jumped $1.13 to $11.63 and Amir Mines was ahead $1.10 to $4.75. Amir has completed negotiations for a private placement in Arizona Star Resources. The money will be used to develop Arizona’s heap leach property near Diemen.

New listings for the week included: Vertica Systems (formerly United Leader), HMR World Enterprises (formerly Vein Ventures), Enterprise Resources, Abalone Resources, Yellowjack Resources, Golden Seven Industries (formerly Corrie Resources), Beardmore Resources, PCH Post Career Habitats (formerly Quest Energy), Essence Resources, and Audre Recognition Systems (formerly Ceasar Resources).