By James Langton

(August 16 – 13:00 ET) – Stocks are trading almost unchanged at midday, with the TSE 300 up only eight points to 11,040. Volume is heavy again at 107 million shares, almost 2:1 in favour of buyers.

However the penny stocks are driving the volume again, drop them out, and you have a fairly even day on the volume front. The advance-decline line bears that out, too, with almost a dead even split between winners and losers.

By sector, the tone in the market is rather bearish. Down groups are leading up groups 9:5. Golds, industrials and miners are carrying the load for buyers, in the face of losses among tmedia stocks and assorted consumer stocks.

Nortel Networks is up slightly at midday in average trading. Company news today includes word that Nortel division, Elastic Networks Inc., has filed for an initial public offering at 7.8 million common shares in a US$10 to US$12 price range. The firm has been operating independent of Nortel since last spring, although after the IPO Nortel will retain 46% control.

It must be hard on the ego when you resign from a company and spark an 8% jump in the stock, but that what’s happened at Corel Corp. The resignation of CEO Michael Cowpland is being greeted as a positive sign for the troubled software firm. Cowpland’s old stomping ground Mitel is up 8%, too.

Other tech issues are popping too, including Delrina, Alcatel and Tundra Semiconductor.

Heritage Concepts continues to lead trading and the rumour mill, up another 5% on 17.4 million shares. William Multi, an Internet incubator, isn’t far behind with 13.7 million shares changing hands. And diamond firm Tahera Corp. has landed on the speculation bandwagon, too, up 33% to 20¢ on 3.2 million shares. De Beers’ Winspear takeover is sparking plenty of speculation in that area.

The downside is being led by Videotron, down lightly in heavy trading. Seagram and Sierra Wireless are down too.

In New York opinion is split on the Street. The Dow is off 36 points to 11,031. The Nasdaq composite is up 32 points to 3,884. The S&P 500 has gained four points to 1,488.

Semiconductor stocks continue to lead the Nasdaq higher, after Analog Devices reported better than expected profits. Other chipmakers followed suit. Retailers though are continuing to fall, taking the Dow down with them.

The volume is back up at the CDNX, with 15.4 million shares moving this morning, but the index is down four points to 3,314. Mines are weakest, followed by oils and techs. EKZ Investments Ltd is the hot trader, with 1.7 million shares changing hands in a single trade.