New TSE Index Holds Top Mines, Producers

Six of Canada's leading mining companies and three metal producers are among the top 35 blue-chip companies included in a new Toronto Stock Exchange (TSE) Index.

Called the Toronto 35 Index, it is a barometer of the overall performance of the TSE market, exchange chairman E. Duff Scott told reporters last week.

The Toronto 35 Index, a supplement to the Toronto 300 Index, is a market monitor and trading instrument. The index tracks the performance of Canada's most heavily traded companies. Based on the index's performance, investors can buy or sell options and futures contracts to meet trading and hedging needs.

Indexed mining companies include Bow Valley Industries Ltd., Dome Mines Ltd., Echo Bay Mines Ltd., Falconbridge Ltd., Noranda Inc. and Placer Development.

Indexed metal producers include Inco Ltd., Stelco Inc. and Alcan Aluminium Ltd.

"Base metals and precious metals have always been historically important to the overall economic picture in Canada,' said Huntley McKay, vice president of markets and marketing development. "We wanted a reasonable weighting in that direction.'

McKay said mining companies are a good indication of market movement and reflect a vital part of the Canadian economy.

Stocks were selected by an industry committee of TSE/Toronto Futures Exchange members and staff, and were chosen on the basis of their liquidity and industry representation.

The TSE is spending Canadian $400,000 ($300,000) over the next year on a sustained marketing program for the Toronto 35 Index, said McKay. But there are no plans to scrap the old 300 index.

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