War fears dampen market

U.S. stock exchanges fell again, during the report period Jan. 22-28, passing their year-end levels on the way and wiping out the New Year rally. The Standard & Poor’s 500 index fell 29.08 points to close at 858.54, a decline of 3.3%, while the Dow Jones industrial average was off 354.06 points at 8.088.84, for a loss of 4.2%.

The bugbears blamed for the falling market included fear of a war in the Persian Gulf; a decline in the U.S. dollar that could have, but didn’t, propel the Federal Reserve to increase interest rates; and some unpleasant earnings news that included the first loss ever recorded by McDonald’s in its history as a public company.

Meanwhile back in the pits, U.S.-listed gold miners again found the ill wind blew them some good. Newmont Mining was the volume leader among the big gold miners, picking up US$1.57 to close at US$29.46, on the exchange of 27 million shares. AngloGold was the big mover, posting a US$2.28 gain to close at US$36.90. Gold Fields, rumoured once more to be a takeover target for Newmont, AngloGold, or Barrick Gold, picked up US46, finishing the period at US$14.21.

Among the smaller South Africans on the U.S. exchanges, Avgold added US78 to finish at US$14.10. Stillwater Mining continued its downward run, sliding another US37 to close out the period at US$4.38.

U.S. juniors also caught the gold wave, with Clifton Mining up US4 at US40, Leadville Mining US3 higher at US24, and MK Gold adding US3 to close at US48.

The bubble burst for heavily promoted Alaskan placer miner Silverado Gold Mines, which fell US28 to finish at US30.