Markets opened a bit weaker today on news that mobile phone giant Nokia had cut its sales forecast for 2002, only to be sent lower by news that a small tourist aircraft crashed into Milan’s tallest building.

Although there’s indication of a terrorist connection to the Milan crash, traders are clearly spooked by the news. The light aircraft crashed into a 30-storey Italian skyscraper after sending out a distress call, killing at least three people and injuring dozens.
At midday, the TSE 300 is down 47 points to 7,821.

Volume is moderate at 81.8 million shares, with an almost even split between buyers and sellers. Losers outnumber winners eight to seven.

The scare in the market has everything down except for golds, which are up 2.4%. The techs are the weakest group, down about 2.5%, led by the Nokia news. Industrials, real estate and telecoms are also notably weaker. Everything else is down just a little.

Nortel Networks is leading the way down, off about 5% amid the Nokia news, and speculation that Nortel may soon announce more layoffs. Volume is modest at 5.4 million shares. JDS Uniphase, Research in Motion, CGI Group, Vector Aerospace and Ballard Power are all down notably. Wireless Matrix and Geac Computer are up however.

Blue chips are leading the way down, with drops in Abitibi, Sun Life, Abitibi, Magna International and Encana. Hurricane Hydrocarbons is weak, as is Falconbridge and CCL Industries.

The golds are benefiting from the general weakness, with Barrick Gold up 1.2% in heavy trading. Goldcorp has gained 3.2%, and there are also gains in Kinross Gold, Bema Gold and Eldorado Gold

There are also gains in Royal Bank, Shoppers Drug Mart, Progress Energy and Maax.

In M&A news, TLC Laser Eye shareholders approved the planned merger with Laser Vision Centers Inc. And, Forbes Medi Tech has received an offer to purchase its pilot manufacturing plant in Amqui, Que., for $1.6 million from 3824527 Canada Inc.

In earnings news, Bennett Environmental has declared a first quarter profit of $3,661,107, up from just $68,890 in net income a year earlier and net income of $2,920,465 in the fourth quarter 2001.

Also, TransAlta Corp. says that it has recorded first quarter 2002 earnings from continuing operations of $40.2 million, compared with $55.9 million for the same period in 2001.

In New York, markets were down anyway, but took a sharp drop on the news from Italy. At midday, the Dow Jones industrial average is down 70 points to 10,151. The Nasdaq composite index has lost 16 points to 1,794. The S&P 500 is down six points to 1,120.

The S&P/CDNX index is holding a gain of five points to 1,163. Volume is strong at 20.6 million shares. Kings Bay Gold is the top trader, flat at 60¢ on 1.5 million shares.