Stocks are weaker Monday as war fears rise amid news that the United States is seeking a second United Nations resolution, which would lay the groundwork for an attack on Iraq. The S&P/TSX index is down 27 points to 6,532.

Volume remains modest at 83 million shares, with buying ahead of the selling 17:14. However, market breadth is much more even, with losers slightly outnumbering winners.

The energy group is propping up the rest of the market, boasting a 2% gain. Real estate is also a little stronger. The big weakness is in the volatile techs, consumer discretionary stocks and financials.

EnCana is leading the way higher with a 1.7% gain in heavy trading. Talisman is up 1.3% on active volume. There is also buying in Canadian Natural Resources, First Calgary Petroleums, Hurricane Hydrocarbons, Total Energy Services, Canadian Superior Energy, Gauntlet Energy, Thunder Energy and Compton Petroleum.

TransCanada Pipelines is bucking the trend, sliding a bit today.

Against the strength in energy stocks, Nortel is leading the tech group lower, with a 4% slide.

Financials are down, led by a 1.7% drop in CIBC. Fairfax Financial is down 3%.

There is weakness in big names such as Rogers, Shaw, Noranda, Ipsco, Teck, CP Rail and Abitibi. Meridian Gold is down 3.8% too.

In financing news, Power Financial Corp. has entered into an agreement with a syndicate of underwriters led by BMO Nesbitt Burns Inc. for a $350-million preferred share offering. Closing is expected on March 11.

Newmont Mining says that expects to sell approximately 7.1 million equity ounces of gold at a total cash cost of approximately $195 an ounce in 2003. This represents a 7% decrease in equity sales from 2002.

Small-cap stocks are faring better today. The S&P/TSX Venture index is up five ticks to 1,008. Volume is quite robust there too at 24.8 million shares. Connacher Oil and Gas is the top trader, down 2¢ to 38¢ with 1.5 million shares changing hands.

The latest steps toward war has U.S markets lower at midday. The Dow Jones industrial average is off 125 points at 7,893. The S&P 500 is 12 ticks lower at 836. Nasdaq is down 13 points to 1336.