By James Langton
(May 9 – 13:00 ET) – Markets are languishing again today on low volume and tech stock weakness. The TSE 300 composite index is down 50 points to 9287. Volume is light at 61.6 million shares, about 3 to 2 in favour of buyers. Advances and declines are evenly split.
Despite some of the positive internal market conditions, Nortel Networks is weighing heavily on stocks. The industrials are down more than 3%, thanks to a 4.5% drop in Nortel on 4.4 million shares. That is enough to wipe out gains in the rest of the market. On its heels are slides in JDS Uniphase, 724 Solutions, Ballard Power, Sierra Wireless, Cognos and Informission.
Despite the decided tech weakness nearly everything else is up. Metals, golds, energy stocks and paper plays are all up strongly. Alcan is up almost 6% in heavy trading. Other old economy stocks are creeping forward, too, including gains in Suncor Energy, Alberta Energy, Potash Corp. Placer Dome and Abitibi.
Trimark Financial is one of the hottest traders today. It is flat with more than three million shares changing hands on news that Amvescap PLC will indeed take it out at $27 per share, although only $7.50 of that is cash.
In New York volume is also gone, as techs slide and the old economy holds up. The Dow Jones industrial average is flat at midday, sitting around 10604. The NASDAQ is off 61 points to 3608. The S&P has dropped seven points to 1417.
Despite the very concentrated slide on the TSE, the tech weakness is also hitting the small caps. The CDNX index is down 57 points to 3452. Techs are down 3.4%, miners are sliding and energy stocks are flat. JNR Resources Inc. is the leading trade on the CDNX, up 40% to 21¢ on 2.5 million shares.