US stocks tumble as the QE3 effect fades, Sept. 24-28 week

U.S. stocks slipped during the Sept. 24­-28 trading week as the economic situation in Europe appeared to worsen and a third round of quantitative easing in the U.S. seemed to lose its magic, re-igniting concerns about economic growth.

During the week, the S&P 500 Index fell 19 points or 1.3% to 1,440.67. That’s the biggest decline since June 1.

The Dow Jones Industrial Average erased 142 points or 1% to end at 13,437.13.  The Nasdaq Composite Index gave back 2% or 64 points to 3,116.28. The Philadelphia Gold and Silver Index lost 4 points to 191 points as the spot price for gold closed down nearly US$2 per oz. to US$1,771.10.

Junior platinum miner Atlatsa Resources was the week’s biggest percentage gainer, soaring 36% or US6¢ to close at US23¢. The South Africa-focused firm said on Sept. 27 it has agreed on an interim restructuring plan with Anglo American Platinum to lower its cost of borrowing.

Under the first phase agreement, the company and its subsidiaries, Plateau Resources and the Bokoni group of companies, will consolidate outstanding debt and preference shares into its existing senior term loan facility with Anglo. The consolidated senior loan will carry an effective annual interest rate of 6.23%, down from the 12.31% rate currently charged on the debt owing to Anglo.

Days after the positive news, the company announced an “unprotected industrial action” at its Bokoni Platinum mines, a joint-venture with Anglo in South Africa. It indicated less than 20% of the employees showed up for work on Oct. 1.

The junior’s management said its existing labour agreement, including wage rates, is effective until June 30, 2013. It adds “it will not negotiate any issues outside of formal bargaining structures,” urging workers to return to work.  

Canarc Resource saw a boost in its shares leading up to the Oct. 1 closure of its previously reported $1.1-million private placement with Canford Capital. The junior closed the Sept. 24-28 period up 14% at US17¢.

The junior published no other releases since it announced the private placement on Sept. 11 and closed the agreement on Oct. 1.

Canford now holds more than 10% of the company after buying 11.3 million units at 10¢ apiece. Canarc also gave Canford 120 days of exclusivity to complete a due diligence and exercise an option to earn up to 51% of its New Polaris gold project in British Columbia in return for $30-million worth of exploration and development on the project.