US equities gain traction over Oct. 4-8 trading week

The Dow Jones Industrial Average climbed 1.63% or 176.8 points to close the Oct. 4-8 trading week at 11,006.48, while the S&P 500 index finished up 1.65% or 18.91 points at 1,165.15. Gold prices continued to surge, adding US$28.40 per oz. or 2.15% to close in New York on Oct. 8 at US$1,347.00 per oz. The Philadelphia Gold and Silver index rose 4.56 points or 2.28% to 204.82.

Eleven companies reached new 52-week share price highs on the New York Stock Exchange: Agnico-Eagle Mines, Agrium, Alumina Inc., ASA (Bermuda), Barrick Gold, Buenaventura, Cabot Corp., Freeport McMoRan Copper & Gold, Gold Fields, Mesabi Trust, Rio Tinto, and Silver Wheaton.

Of them, Freeport McMoRan Copper & Gold topped the list of value gains with an advance of US$6.37 to US$95.51 per share. On Sept. 29, the company declared a cash dividend of US$0.30 per share payable on Nov. 1 to holders of record as of Oct. 15 for its common stock.

In the potash space, Agrium posted the second-largest share price gain of the week, jumping US$6.07 to US$81.08. On Oct. 3 the company announced it had received approval from Australia’s Foreign Investment Review Board for its proposed acquisition of AWB Limited. AWB was formed in 1939 as the Australian Wheat Board and has been Australia’s statutory grain marketing authority for more than sixty years. The acquisition still requires regulatory, shareholder and court approvals. Mosaic claimed the third-largest value increase of the week, climbing US$5.99 per share to close at US$65.61. On Oct. 8 Mosaic’s board of directors declared a quarterly dividend of US$0.05 per share on the company’s common stock. The dividend will be paid on Nov. 18 to stockholders of record on Nov. 4.

Finally, Compass Minerals, which produces minerals including salt, sulfate of potash specialty fertilizer and magnesium chloride, added US$3.61 to US$79.74 per share. The company announced on Oct. 4 that it had amended and extended its senior secured credit facility by extending the maturity on a portion of its existing term loans and replacing its revolving line of credit. Compass Minerals extended the maturity on about $234 million of its term loan to 2016 at a rate of 2.75% over LIBOR. The remaining $156 million of the original term loan will mature in December 2012. The new $125 million revolving credit facility due in 2015 carries a drawn interest rate of 2.75% over LIBOR based on the company’s current leverage ratio.