30 WWW.PGCITIZEN.CA | THURSDAY, DECEMBER 15, 2011 Mone Gold tanks amid euro fears The Canadian Press TORONTO — Gold prices tumbled on international markets Wednesday as renewed fears about a looming European recession and rumours of hedge fund selling took the lustre off the precious metal. The February bullion contract dropped US$76.20 to US$1,586.90 an ounce, one of the biggest selloffs in months. The selloff hit gold miners on the Canadian markets, pushing the sector down 2.9 per cent and hammering the stocks of big producers such as Barrick Gold Corp. (TSX:ABX), down $1.82, or 3.77 per cent, at C$46.47. BMO Capital Markets economist Robert Kavcic said the drop came as the U.S. dollar gained ground, especially against the euro. “We’ve seen a pretty broad-based retreat in commodity prices and it seems like a lot of hedge funds and investors are selling their gold to cover losses elsewhere,” Kavcic said. He also noted that the price of gold dropped below its 200-day average - a much watched technical indicator - for the first time since January 2009 at the tail end of the financial crisis. “When you see a technical event like that it tends sometimes to accelerate the selling because a lot of people are trading off those specific technical events,” he said. Meanwhile, the euro fell below US$1.30 Wednesday on fears that European leaders won’t be able to solve the region’s debt crisis. It’s the first time the euro has fallen below that level since January. At the same time, the U.S. dollar gained against most other currencies. “And when you get a strong dollar, you get weaker commodity prices and we seem to be seeing this right across the board,” said Patricia Mohr, vice-president and commodity markets specialist at Scotiabank. “Gold, in particular, has taken quite a hit today but even stronger commodities like oil are down, over US$5.” The market verdict - that Europe’s debt problems are still unsolved - comes after five days of accumulating questions about whether a new deal setting limits on the debt of eurozone countries and added contributions to the International Monetary Fund will take full effect. Wednesday’s gold plummet also followed a pronouncement Tuesday by Dennis Gartman, a widely followed publisher of an investment newsletter, that the run-up in bullion appeared to be at an end. In his newsletter, Gartman noted the price has been down in recent trading even as China aggressively bought the precious metal. “One of the oldest rules of trading is simply this: A market that cannot or does not respond to bullish news is a bearish market not a bullish one,” Gartman wrote. However, Barry Cooper, a managing director of institutional equity research at CIBC, has suggested that the “safe haven” characteristics of gold will play an important role in demand for the metal. “The robust outlook for bullion remains intact as we continue to see debasing of currencies as the key contributor to gold’s rise,” Cooper said in a recent note to clients. TSX drops to third triple-digit loss The Canadian Press TORONTO — The Toronto stock market closed sharply lower Wednesday, pressured by steep drops in the price of oil, gold and copper amid worries about the European debt crisis. The S&P/TSX composite index racked up its third consecutive triple-digit loss, falling 216.9 points to 11,543.05 while the TSX Venture Exchange gave back 52.5 points to 1,405.93. Gold stocks sold off despite the latest round of market nervousness, losing about 2.5 per cent as the February bullion contract dropped $76.20 to US$1,586.90 an ounce as traders forsook risk and piled into the safe haven of U.S. Treasuries (see story left). “When risk aversion is extreme, investors still shift into the security and liquidity of U.S. Treasurys or into cash and not into gold,” said Patricia Mohr, vice-president and commodity markets specialist at Scotiabank. “Gold has been extremely volatile in the past week, every day up a lot or down a lot. I think that’s probably indicative of a market where investors are not sure about the outlook for gold.” A stronger greenback usually helps depress commodity prices, which are denominated in dollars, as it makes oil and metals more expensive for holders of other currencies. The stronger greenback and weaker commodities pushed the Canadian dollar down half a US cent to 96.19 cents US as traders avoided risk and bought into U.S. Treasuries. U.S. markets also fell with the Dow Jones industrials down 131.46 points to 11,823.48. The Nasdaq declined 39.96 points to 2,539.31 and the S&P 500 index lost 13.91 points to 1,211.82. Losses accelerated after Germany’s top central banker warned that the European Central Bank should not create new money as a way of solving the eurozone debt crisis. Jens Weidmann said that making the central bank support government finances would cost it its independence. It would also cost it its credibility as an inflation fighter, Weidmann said. I WestJet inks Asian deal CALGARY (CP) — WestJet Airlines Ltd. has signed an interline deal with Japan Airlines that will make it easier for passengers to connect between the two airlines. The Calgary-based carrier says the code-share agreement launches on Thursday. Travellers will be able to link from Japan Airlines flights landing in Vancouver which will then connect to West- Jet flights destined for Calgary, Edmonton, Kelowna, Montreal, Toronto and Winnipeg. Code-share agreements allow both airlines to sell seats on each other’s planes using the same two-digit code. Customers of either airline are able to travel over connecting flights on one ticket, get boarding passes for all flight legs at check-in and tag bags through. TSE winners Stock Symbol Last dollar % 52 Wk 52 Wk Trade Chge Chge High Low Diversine DIV 0.39 + 0.21 + 110.8 0.53 0.16 Enssoluti ENV 0.01 +0.01 +100.0 0.06 0.01 NewG WT C NGD.WT.C 0.70 +0.25 + 55.6 0.72 0.23 Iplayco IPC 0.17 +0.06 + 54.5 0.20 0.08 Pine WT A PNP.WT.A 0.06 +0.02 +50.0 1.10 0.04 UniqueBba UBS 0.03 +0.01 + 50.0 0.11 0.02 NobleMeta NMG 0.02 +0.01 + 50.0 0.06 0.01 EverettRe EAR 0.02 +0.01 + 50.0 0.08 0.01 CalyxBio- CYX 0.30 + 0.10 + 50.0 0.30 0.15 Cenit CNT 0.08 +0.03 +45.5 0.14 0.05 Silver Sp SSE 0.08 +0.03 +45.5 0.36 0.05 NewWEgySv NWE 0.07 +0.02 +44.4 0.13 0.01 Metropoli MNZ 0.20 +0.06 +42.9 0.51 0.09 DynastyGl DYG 0.05 +0.02 +42.9 0.16 0.03 BNPResA BNX.A 0.09 +0.03 +41.7 0.13 0.04 TSE losers Stock Symbol Last dollar % 52 Wk 52 Wk Trade Chge Chge High Low SpYl PR B YLD.PR.B 0.03 -0.04 -57.1 1.30 0.05 SLSplitAC SLS 0.27 -0.21 -43.8 4.50 0.20 Desmarais DES 0.04 -0.03 -41.7 0.35 0.02 SplitYiel YLD 0.05 -0.03 -40.0 0.65 0.02 RevaRes RVA 0.06 -0.04 -40.0 0.50 0.05 AugenCapC AUG 0.04 -0.03 -38.5 0.12 0.04 Indicator IME 0.01 -0.01 -33.3 0.26 0.01 SectionRo SRO 0.01 -0.01 -33.3 0.04 0.01 SilverBea SBR 0.45 -0.22 -32.6 1.40 0.42 G4G Res GXG 0.05 -0.02 -30.8 0.20 0.06 Rockcliff RCR 0.09 -0.04 -29.2 0.40 0.08 EquitechC EQT 0.08 -0.03 -28.6 0.19 0.08 FlyingAPe FAB 0.04 -0.02 -27.3 0.14 0.04 SAMEXMngC SXG 0.46 -0.17 -27.0 1.50 0.59 GlobeD UN GII.UN 0.65 -0.22 -25.3 2.75 0.75 TSE locals Stock Symbol Last dollar % 52 Wk 52 Wk Trade Chge Chge High Low BallardPo BLD 1.220 0.010 +0.8 2.450 1.170 Canfor CFP 9.870 -0.190 -1.9 15.480 8.800 CdnNat’lR CNR 76.250 -1.190 -1.5 81.790 63.720 Chemtr UN CHE.UN 14.400 -0.090 -0.6 15.210 11.300 Enbridge ENB 36.120 -0.230 -0.6 36.960 27.045 HuskyEner HSE 24.150 -0.470 -1.9 30.580 20.630 ImperialM III 12.300 -0.480 -3.8 13.550 8.820 Int’lFo A IFP.A 3.750 -0.050 -1.3 7.490 3.500 M,D&Assoc MDA 47.620 0.050 + 0.1 58.730 41.700 NovaGoldR NG 9.210 -0.550 -5.6 15.010 6.260 PacNorthe PNG 36.620 -0.080 -0.2 37.600 23.290 TELUS T 56.210 0.610 + 1.1 56.300 44.980 ThompsonC TCM 6.710 -0.120 -1.8 15.430 5.790 TimHorton THI 48.700 -0.450 -0.9 52.750 40.380 WestFrase WFT 38.100 -1.880 -4.7 62.860 34.900 MUTUAL FUNDS best/worst Best Net Asset 3-Month Fund Value % Chge The Friedberg Currency Fund 15.225 26.571 MLI U.S. Large Cap Equity Cl Adv C$ 11.355 9.838 Fidelity Small Cap America Fund Sr A C$ 23.519 9.658 Fidelity Small Cap America Class Sr A 11.382 9.550 HAP North American Value ETF 10.558 9.530 Investors U.S. Dividend Growth Fund 9.339 9.124 CI Global Science & Technology CorCl AC$ 13.380 9.069 Mawer U.S. Equity Fund Class A 17.951 9.043 MLI U.S. Equity Fund Adv Ser 9.539 9.037 Clarica SF CI Global Sci & Technology 6.780 8.847 Worst Net Asset 3-Month Fund Value % Chge Pathway Energy Series A Rollover MIN002 0.738 -32.484 Sprott 2011 F-T LP 12.165 -24.235 Qwest Energy Canadian Resource Class 2.801 -23.527 BMO Agriculture Commodities Index ETF 11.266 -22.835 Claymore Natural Gas Commodity ETF - GAS 18.925 -22.730 Pathway Multi SF Explorer Sr A Rollv 001 3.349 -21.055 Webb Enhanced Growth Fund 5.286 -20.900 BlackBridge Resource Capital Cl Fund A 2.547 -20.612 PowerShares Global Clean Energy Class A 4.692 -19.548 NexGen Global Resource Tx Mgd ROC 6.437 -19.240 FINANCIAL HIGHLIGHTS TORONTO (CP) — Highlights at the close of Wednesday’s world financial market trading. Stocks S&P/TSX Composite Index - 11,543.05, down 216.90 points TSX Venture Exchange - 1,405.93, down 52.50 points Dow - 11,823.48, down 131.46 points S&P 500 - 1,211.82, down 13.91 points Nasdaq - 2,539.31, down 39.96 points Currencies at close Cdn - 96.19 cents US, down 0.50 of a cent Euro - C$1.3498, up 0.16 of a cent Euro - US$1.2984, down 0.52 of a cent Oil futures (January) $94.95, down $5.19 Gold futures (February) $1,586.90, down $76.20 Canadian Fine Silver Handy and Harman $31.240 an oz., down 2.239 TORONTO (CP) --- - These are CURRENCIES Russia rouble 0.0327 indicative wholesale rates for for- Saudi Arabia riyal 0.2775 eign currency provided by the Lebanon pound 0.000693 Sweden krona 0.1485 Bank of Montreal at midday on Malaysia ringgit 0.3270 Switzerland franc 1.0921 Wednesday. Please inquire at any Mexico peso 0.0747 Thailand baht 0.0332 branch for cash rates. Quotations N.Z. dollar 0.7809 Trin-Tob dollar 0.1639 in Canadian funds. Norway krone 0.1736 Turkey lira 0.5520 Brazil real 0.5535 Pakistan rupee 0.0116 Ukraine hryvnia 0.1298 China renminbi 0.1633 Philippine peso 0.0236 U.A.E. dirham 0.2833 Euro 1.3498 Poland zloty 0.2964 U.K. pound 1.6071 Japan yen 0.013330 Romania leu 0.3109 U.S. dollar 1.0406 MARKET MOVERS The Canadian Press TORONTO — Some of the most active companies traded Wednesday on the Toronto Stock Exchange and the TSX Venture Exchange: Toronto Stock Exchange (11,543.05 down 216.90 points): Crocodile Gold Corp. (TSX:CRK). Miner. Up 14.5 cents, or 42.65 per cent, at 48.5 cents on 25,481,685 shares. Manulife Financial Corp. (TSX:MFC). Insurer. Down 15 cents, or 1.42 per cent, at $10.38 on 13,462,274 shares. Bombardier Inc. (TSX:BBD.B). Transportation equipment. Down eight cents, or 2.23 per cent, at $3.50 on 6,845,291 shares. Gran Colombia Gold Corp. (TSX:GCM). Miner. Down 2.5 cents, or 6.58 per cent, at 35.5 cents on 6,533,263 shares. Suncor Energy Inc. (TSX:SU). Oil and gas. Down 92 cents, or 3.17 per cent, at $28.13 on 6,436,798 shares. Platmin Ltd. (TSX:PPN). Miner. Up 0.5 cents, or 3.13 per cent, at 16.5 cents on 5,628,822 shares. TSX Venture Exchange (1,405.93 down 52.50points): Encore Renaissance Resources Corp. (TSXV: EZ). Mineral exploration. Up 0.5 cents, or 25 per cent, at 2.5 cents on 20,341,000 shares. Iberian Minerals Corp. (TSXV:IZN). Miner. Unchanged at $1.09 on 11,756,033 shares. Companies reporting major news: Cominar Real Estate Investment Trust (TSX:CUF.UN). Real estate. Up two cents, or 0.09 per cent, at $21.80 on 114,443 units. The REIT says it is “disappointed” by the rejection of its takeover bid for Canmarc Real Estate Investment Trust (TSX:CMQ.UN) but “confident” the offer will eventually be accepted. Canmarc units were up six cents, or 0.38 per cent, at $16.01 on 887,008 units. McCoy Corp. (TSX:MCB). Oil and gas. Up nine cents, or 3.13 per cent, at $2.97 on 12,385 shares. The company tripled its quarterly dividend as the company generated fatter profits and revenues from booming times in the oilpatch. FULL MUTUAL FUND LISTINGS IN YOUR SATURDAY PRINCE GEORGE CITIZEN