By James Langton

(February 11 – 13:00 ET) – The yo-yoing gold market and volatile tech stocks have pushed the TSE 300 down this morning. It’s off 44 points to 9,276 on strong volume of 128 million shares. Decliners are edging out advancers but the volume remains almost 2:1 in favour of buyers, thanks primarily to heavy penny stock volumes.

Gold is the biggest down sector, off more than 3.5%. The metal itself is down US$6.10 to US$307.80 in New York. Silver is following gold down, but the other precious metals continue to enjoy stronger prices. The other mining stocks are up strongly against the golds, gaining 3.6% so far.

Tech stocks have been the other locus of selling, with industrials and utilities heading down too. Paper stocks are also sliding as the yesterday’s hype over possible mergers is defused by the announced bid by Abitibi Consolidated for Donohue Inc. Abitibi stock is taking a pounding on the news, down 9.5% in heavy trading. Donohue is up a mere 25¢ to $37.55 on news of Abitibi’s $7.1 billion bid, including stock, cash and assumed debt.

Canadian Natural Resources is trading strongly, up 5% on 2.2 million shares. Alberta Energy is also active, up 4.5% on 1.3 million shares. Potash is bouncing off the slagging it took yesterday, up 5.7%. Inco is up more than 8% on 1.2 million shares.

Despite the rotation in cyclicals, the selling from techs is depressing markets. The usual suspects among the techs, including BCE Emergis, 724 Solutions, JDS Uniphase, and Research in Motion are dragging lower at midday.

The small caps are uncharteristically quiet today. The CDNX index is up four points to 3,257, on average volume of 56 million shares. A new volume leader, Caravan Oil & Gas, appeared today, up 10% on 3 million shares. Nuvo Network Management is down 19% on 2.3 million shares.

In the U.S. markets shrugged off a Wall Street bombing, believed to be the work of a lone individual rather than a sophisticated terrorist strike. The also shrugged off some favourable economic data to trade lower in morose action. The Dow is down 48 points to 10,595. Naadaq has slipped 35 points to 4450. The S&P is down 10 points to 1,407.