Stocks are tumbling today with geopolitical concerns spooking investors. However, trading volume is very light, suggesting that many traders are sitting on the sidelines. At midday, the S&P/TSX index is down 87 points to 8,496.

Markets plunged overseas on news of Israel’s killing of an influential Hamas leader. This sparked fears of escalated terrorism in response.

In Taiwan, the presidential incumbent won a narrow victory over a more China-friendly candidate. Opposition leaders are demanding a recount, and the uncertainty surrounding the region is battering tech stocks in particular.

Toronto volume is very weak though, with just 112 million shares traded. Selling is outweighing buying action by about four to three. Market breadth is very weak, as losers outnumber winners by a 15:8 margin.

On a sector basis, everything is down except golds. A flight to safety bid has gold issues up 1.3%. Placer Dome is managing a 1.1% gain. Barrick is flat, but there is strength in smaller producers such as Golden Star Resources, Nevsun Resources, Eldorado Gold, Gabriel Resources, Wheaton River and Miramar Mining.

Technology shares are down 3%, miners have dropped 2.2%, health care names are down more than 2%, and there’s selling in industrials, consumer stocks, financials, energy and telecoms, too.

Nortel is leading the way down, following a worldwide drop in tech stocks, based on the political uncertainty gripping Taiwan, which is a major manufacturing centre for chips and other tech components. It is down 4.4% on 13.1 million shares.

Joining Nortel on the downside are other popular tech names such as Zarlink Semi, Sierra Wireless and Telesystem International Wireless.

Last week’s big mover in the telecom space, Manitoba Telecom, is down another 1.5% today. BCE is down 0.8%.

The heightened political uncertainty is hitting stocks generally, sparking a 2.3% drop in blue chips such as Alcan. Inco is 3.3% lower. Suncor Energy has dropped 1.4%, EnCana is down, as is Major Drilling. Cumberland Resources has dropped most, falling 22% on more bad news from a feasibility study at one of its key projects.

Financials are weaker, with Royal Bank down 0.9%. CIBC, TD Bank, and Scotia are all lower too. Manulife has dropped 1.1%. However, Bank of Montreal is holding up, making a small gain in defiance of the strong general trend.

Other weak names include Canadian Tire, Forzani and Biovail.

In M&A news, Aventura Energy is up 5.2% on news that it has entered into an agreement with BG Group to sell 100% of Aventura for $5.10 in cash per share. The total transaction is valued at $228 million. The transaction is expected to be completed in early May.

There is also some spot strength in Molson, Sears Canada and Oncolytics Biotech.

In earnings news, Ensign Resource Service Group has seen its net income increase 91% to $99.0 million for 2003, compared with net income of $51.7 million for the prior year.

Alto Resources International Inc. reported that it lost $26.1 million in 2003.

In New York, the market opened on weaker, and it has remained down sharply all day. The Dow Jones industiral average is currently off 107 points at 10,080. The Nasdaq composite index is down 28 points to 1,912.

The S&P/TSX Venture is blissfully ignoring all the strife, gaining a point to 1,876. Volume is decent there, too, at 39.8 million shares.