Toronto Stock Exchange, Oct. 15-18

The S&P/TSX Composite Index was up 233 points to 13,136.09 for the holiday shortened period. But the gains paled in comparison to the momentum south of the border after a debt deal was reached. The performance gap between the S&P/TSX Composite and the U.S. S&P 500 Index has some experts optimistic for the Canadian index. CIBC analyst Benjamin Tal noted that the TSX is up only 6% this year compared to the 22% gain made by the U.S. index. Tal notes that whenever the TSX has lagged the S&P 500 by a wide margin, it has always rebounded by an average of no less than 16% in the following year.

The S&P/TSX Global Gold Index was up 9 points to 170.38, as the gold price was up US$41 per oz. to US$1314.60 per oz. Helping the metal was the view that quantitative easing would taper later than expected.

The S&P/TSX Capped Diversified Metals & Mining Index was up 27 points to 798.41 points, as the price of copper was flat at US$3.30 per lb.

New Dawn Mining was the week’s biggest gainer by percentage, with shares climbing 75% to 14¢ after its indigenization plan in Zimbabwe was approved. Indigenization was set-up by President Robert Mugabe, and in this case it calls for four indigenous investor groups to acquire an interest in New Dawn. The company will also transfer 15% of its equity to an employee-ownership scheme and a community trust. Indigenous investors will end up with 42% of the company. New Dawn shares fell 50% last month when it said it was considering a share-consolidation plan.

Brigus Gold shares were up 22% to 67¢ for the period after the company said drill testing extended the mineralization depth at its Black Fox mine to 700 metres from 300 metres. The hole returned a highlight intercept of 40.71 grams gold per tonne over 26.8 metres. That’s big news, as it indicates the deposit may go down below the 1,000-metre mark, as many other mines in the Timmins mining camp do. The deposit remains open along strike and at depth.

On the other side of things, Revett Minerals was down 40.7% to 70¢. The fall came as the company said it would have to build a new decline at its Troy mine in northwestern Montana. Revett said that dewatering and inspection of the Lower Quartzite haulage route showed it was structurally unstable and couldn’t be developed. Its underground crusher, conveyor system and surface mill will stay on a care and maintenance until production resumes. Revett said the Lower Quartzite haulage route would still be used as an access point for mine dewatering and ventilation. As for when mining will resume, the company said it could take a year to access the North C Bed area. It plans to build the $12-million decline once it obtains approval.

TSX most active issues

TSX greatest percentage change

TSX greatest value change