U.S. equities strong performers, Sept. 3-7

Hopes of additional stimulus measures from the U.S. Federal Reserve after news of disappointing jobs data in the month of August; the announcement by the Chinese government of a US$150 billion infrastructure building program; and news that the European Central Bank plans to buy more short-term debt, all  contributed to the best weekly performance the benchmark S&P 500 has had since June and the Dow Jones Industrial Average’s best since July.  The S&P climbed 2.2% or 31.34 points to finish at 1,437.92 while the Dow rose 1.7% or 215.8 points to 13,306.64. The Philadelphia Gold and Silver Index rose 5.5% or 9.4 points to 179.28.

Reports from China’s state-owned news agency Xinhua that Beijing plans to pump additional funds into infrastructure projects sent shares of Freeport McMoRan Copper & Gold up US$3.32 to US$39.43. Xinhua reported that 55 new investment projects include rail and road construction, sewage treatment, power stations, wind farms and waste incinerators. Freeport ended the week the second most-actively traded stock with more than 85 million shares changing hands.

Shares of Petaquilla Minerals surged 74.5% to 64¢—the highest percentage gain of the week—after Inmet Mining made an offer for the company worth about $112 million. Inmet is offering 48¢ in cash or 0.0109 Inmet shares for each Petaquilla common share, a deal representing a 37% premium to Petaquilla’s closing share price on Sept. 5 and a 30% premium to its 20-day volume weighted average price.  Petaquilla operates the Molejon open pit mine in Panama, about 130 km west of Panama City.

Rio Tinto advanced US$4.81 to US$48.64. The mining conglomerate announced it had completed its acquisition of BHP Billiton’s interest in Richards Bay Minerals, a South African mineral sands mining and smelting operation and the leading producer of chloride titanium dioxide feedstock. Earlier in the week Rio Tinto reported that it also had completed its sale of the North American portion of its Alcan Cable business to General Cable Corp. for $151 million in cash.

Peabody Energy gained US$2.08 to US$23.71. The coal producer announced that it will permanently close its Air Quality Mine in Vincennes, Indiana due to soft market conditions that have made the operation uneconomic. The coal miner also confirmed separately that the sales process for its Wilkie Creek mine in Queensland Australia remains underway and that it continues to hold discussions with interested parties.