Morning Commentary: Newmont Mining weaker in trade; Aegerion shares retracing gains; trading quiet

By Rebecca Melvin

New York, Aug. 28 – Newmont Mining Corp. traded flattish but about a point lower compared to recent levels early Thursday as U.S. convertibles in general were quiet ahead of the long holiday weekend for Labor Day, market sources said.

The Newmont 1.625% convertibles due 2019 changed hands little changed at 107.25, with shares of the Denver-based gold and copper mining company 1% higher.

Newmont shares were last up 29 cents, or 1%, at $26.81.

“The Newmonts were comfortably 108 last week, but guys seem to be paring down their positions amid a lessening of geo-political tensions,” a New York-based trader said. “There’s less reason to hold an asset like this.”

Expectations had been growing in the last day or so for a non-violent settlement in the Ukraine and a ceasefire agreement in Gaza and recent success for U.S. military drones in Iraq had also fueled positive expectations. But the latest headlines were negative, with reports of Russian troops moving into Ukraine.

Aegerion Pharmaceuticals Inc.’s shares were retracing gains notched on Wednesday, down 4.6% on Thursday after rising 5% the day before. The Aegerion 2% convertibles closed Wednesday at 103.75 bid, 104 offered against a $32.54 share price.

Overall, trading was very quiet, market sources said, with sparely staffed trading desks getting down to skeleton crews ahead of the long weekend.

“People are leaving to start their weekend,” a trader said.

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