By James Langton

(May 17 – 13:00 ET) – The Bank of Canada matched the U.S. by raising rates 50 basis points. With the rate increases out of the way for now, trading remains sluggish.

The TSE 300 compostieis down 123 points to 9458 on light volume of 78.3 million shares. The downside volume is more than double the buying and decliners are outpacing advancers 11:8. The decline is broad-based with just about every group, apart from the pipelines, in the red. The pipelines are strong, up 2.73%.

Everything else is down, led by the software sector which is down 4%. Golds are down more than 3%, utilities, industrials, miners and conglomerates are all down sharply, too. Software is being led down by 724 Solutions, Cognos and Informission. There’s also weakness in Ballard power, QLT Phototherapeutics, Sierra Wireless, BCE Emergis and Celestica. Nortel Networks is leading the techs off 2%. Laidlaw is down yet again. Canadian 88 has taken a 10% haircut.

A few techs are resisting the slide, including Softkey, Delrina and Bakbone. There are also spots of strength in names such as Westjet Airlines, Norsat International and Newport Petroleum.

Financials are weak with the insurers shedding recent gains and financial management companies down sharply, too. The rate hikes are hurting these firms, despite strong results at Manulife Financial. Trimark Financial has dropped a nickel in continued active trading.

In New York, trading is rather weak, too. The Dow Jones industrial average has slipped 160 points to 10774 in light volume. NASDAQ is off 82 points to 3635. The S&P is off 21 points to 1445.

The CDNX is weak, too. It’s down 18 points to 3421. Volume is light there at 13.3 million shares. Techs are down more than 1%, miners are weak, too, but oils are ticking up. Marchmont Gold Corp. is the hottest trade, up 157% to 18¢ per share on almost 900,000 shares. For those with short memories, in a former life Marchmont did business as the scandal-plagued Timbuktu Gold Corp.