While reaction to news of Saddam Hussein’s capture drove markets to an early celebration, it was relatively short lived. Canadian markets are sliding a bit in very light volume. The S&P/TSX composite index is down 28 points to 7,951 at midday.

News that Canada’s index of leading indicators gained 0.8% in November, the sixth straight increase, hasn’t helped spark much trading, let alone buying.

Volume is quite weak at 107.8 million shares, with the selling outpacing the buying by a 27:22 margin. Market breadth is also bearish, with losers outnumbering winners by a six to five margin.

Energy stocks are being hit by a slide in oil prices, inspired by Hussein’s capture. The sector is down almost 1%.

There is also considerable weakness in telecoms, health care, utilities and golds.

Consumer stocks are a little stronger on talk that retail spending may increase because of the big Iraqi arrest.

TSX financial stocks are leading the trading volume, with Royal Bank down 1.2%, and Bank of Montreal off 1%. TD Bank, Scotia and Manulife Financial have showing small slides, although CIBC is up a little.

Placer Dome and Wheaton River are leading the selling in gold stocks. There is also weakness in Lionore Mining, Great Northern Exploration and Bema Gold.

EnCana is leading energy plays down, with selling also evident in Husky Energy and Viking Energy. However, Ivanhoe Energy and Southwestern Resources are up in active trading.

Other notable losers include Finning, Cameco, and Canadian Tire. BCE is down 1% on news that BCE Emergis Inc.’s president, Christian Trudeau, is leaving and the job of chief operating officer is being eliminated.

Tech-bellwhether Nortel is down 0.5% in light trading. Telesystem International Wireless is lower, too. However, Zarlink Semi is up.

Other gainers include Ipsco, Stelco, Neurochem and Rogers Communications.

Cott Corporation has gained 2.6% on news that it expects fiscal 2004 sales to grow by approximately 10% to 12% and earnings by approximately 15%, consistent with previously disclosed objectives. Also, Cott has filed a final prospectus in connection with the previously announced secondary offering of 7.5 million common shares by Thomas H. Lee Partners LP.

In other news, Inex Pharma’s phase I human clinical trial for its drug delivery technology has been delayed and is now scheduled to occur in the third quarter of 2004. The previous guidance was for the trial to start in the first quarter of 2004.

Northstar Aerospace will close a machining facility by March 31, 2004. The company will record a charge to earnings of approximately $5.7 million related to the closing.

Berens Energy has closed its deal for Matrix Petroleum for 0.51 of a Berens common share for each common share of Matrix.

In New York, traders are more upbeat about the arrest of Saddam, hoping that this will make the country’s slog in Iraq go a little easier. However, the Dow Jones industrial average is up 73 points at midday to 10,115. The Nasdaq composite index has has added 10 ticks to 19,59.

The S&P/TSX venture composite index is also down a little, sliding five points to 1,666. Volume is light there too at 30.9 million shares. Zaq Inc. is leading the trade, jumping 17¢ to 23¢, on more than 2 million shares traded.