Market absorbs rate cut

Denver — The Dow Jones industrial average climbed 76.22 points, or 0.7%, in the report period ended Feb. 6 to close at 10,957.42. The market got a boost when the U.S. Federal Reserve cut interest rates by 0.5% on Jan. 31.

However, the move proved unfortunate for gold, which fell to US$263.30 on the Comex division of the New York Mercantile Exchange. Newmont Mining slumped 64 to US$14.96, though it posted fourth-quarter earnings of US12 per share. AngloGold slid 27 to US$13.99, while Nasdaq-listed Randgold & Exploration lost 19 to close at US$1.81 after the South African Reserve Bank nixed the proposed merger with subsidiary Randgold Resources. Ashanti Goldfields bucked the downward trend, advancing 26 to US$2.76.

The big news of the week was Anglo American’s bid to take De Beers Consolidated Mines private. De Beers jumped $5.88 to a new high of US$37.94 in heavy Nasdaq trading, while Anglo was up 75 to US$63.75.

Comex copper prices held firm at US83 per lb., as BHP climbed $1.01 to US$21.45. Class A and B shares of Freeport-McMoRan Copper & Gold advanced $1.10 and $1.21 to close at US$11.90 and US$12.65, respectively. Southern Peru Copper inched up 32 to US$12.10, though Phelps Dodge was off $1.15 to US$45.17.

Rio Tinto gained $2.24 to US$72.74 on US$1.5 billion in 2000 earnings, while Australia’s Western Mining rose 61 to US$16.61. Palladium-miner Stillwater Mining sunk $1.29 to US$36.72, while American Stock Exchange-listed Apex Silver Mines dropped a quarter to US$9.50.