TSX reverses trend on Middle East unrest for Jan. 24-28 week

Toronto’s resource laden composite index rose 179 points, or 1.4%, over the report period Jan. 24-28 as unrest in the Middle East sent gold and oil higher at the end of the week.

The price of crude oil slipped to the mid-80s before recovering to US$89.34 per barrel, up US23 cents on the week. Gold fell through the US$1,320 level before shooting up to US$1,340.70 per oz., marking a US30-cent loss for the week. The Canadian dollar was down 0.57 of a cent to US99.89 cents.

The Global gold index gained 5.18 points over the 5-day trading period to finish at 377.04, up 1.4%. Barrick Gold, one of the stocks that moved the index the most, tacked on $1.06 to close at $47.39. The spot price of silver was up US50 cents at US$27.96 per oz.

Spooked by protests in Egypt, Centamin Egypt slipped 12 cents to close at $2.21. Its flagship project, the Sukari gold mine, is located in the Eastern Desert of Egypt, some 25 km from the Red Sea. Gold production commenced in June 2009. The mine is scheduled to produce upwards of 170,000 oz. in 2010.

With copper also on an upward move at US$4.44 per lb., for a gain of US4 cents, the Capped Metals & Mining index rose 13.3 points, or 0.9%, to end the period at 1,470.84. First Quantum Minerals closed up $2.75 at $114.49 after announcing plans to invest US$2 billion expanding many of its mining operations through to 2014, excluding the potential development of the Haquira deposit in Peru and the building of a copper smelter in Zambia.

Potash Corp. of Saskatchewan reported strong fourth quarter earnings of $1.61 per share, more than double the previous year’s quarter, on growing global food demand. This raised full year earnings to $1.8 billion, or $5.95 per share – the second highest total in company history – and surpassing the $981 million, or $3.23 per share, earned in 2009. The company also announced a three-for-one stock split and an increase in the quarterly dividend to 21 cents per share, up from 10 cents, on a presplit basis. PotashCorp closed at $173.99, for a gain of $14.22.

Uranium producer Cameco jumped $2.18 to end the trading week at $39.96. The company’s year-end results will be announced after markets close on Friday, Feb.11.

B2Gold finished at $2.40, up 9 cents. The junior announced that its La Libertad and Limon mines in Nicaragua produced 37,000 oz. gold in the fourth quarter, bringing production for 2010 to 109,000 oz.