Falling energy stocks are sabotaging broader strength in the Canadian market today.

At midday, the TSE 300 is down 54 points to 7,295.

Volume is heavy at 104 million shares, with sellers outpacing buyers 11 to nine. Losers have an 11 to seven edge over winners.

Energy stocks are plunging today, down almost 8% on speculation that oil prices could plunge as low as US$10 per barrel, as OPEC and Russia face a price war.

Golds are also weak today, but that’s about it. Most other sectors are sporting gains, led by transports, media stocks and department stores.

Oils are the story stocks of the day today. Talisman Energy is leading the way down, off almost 12% on 2.7 million shares.

There are also sharp losses in Suncor, TransCanada Pipelines, Petro Canada, Alberta Energy, Precision Drilling, Baytex Energy, Imperial Oil, Canadian Natural Resources, Storm Energy, Penn West Petroleum and PanCanadian Energy.

There are also slides in takeover target Franco-Nevada and Alcan is sliding off yesterday’s highs.

Telesystem International Wireless is also sliding, down 21% after it released a statement declaring that the company continues to review opportunities to refinance subordinated debt, amend its debt agreements, raise new financing and sell assets.

Against these heavy losses in the energy group, the rest of the market is posting modest gains. Nortel Networks continues higher, with tech support from 724 Solutions, Wi-Lan, Surefire Commerce, Exfo Electro, Bell Canada International and GT Group Telecom.

There are also gains in TD Bank, on news that its bid to take TD Waterhouse private has succeeded by the slimmest of margins.

It is also rumoured as the front runner to takeover Merrill Lynch’s coveted retail brokerage force. Other gainers include Transat, Four Seasons, Moore Corp. and CanWest.

In New York, strength in the broader market is overcoming energy stock weakness. The Dow Jones industrial average is up 38 points to 9,862. The Nasdaq composite index is down a point to 1,902. The S&P 500 is more or less flat at 1,141.

The CDNX is taking its energy sector lumps, down six ticks to 3017. Volume is strong at 15.1 million shares.

Oils are leading the way, with minimal resistance from miners and techs. Toby Ventures Inc. is the top trader, up 12% to 28¢ on 2.2 million shares.