Stocks are struggling to hang on to modest gains today. The Toronto Stock Exchange 300 composite index is up just 18 points at midday to 8269. Volume is strong again at 79 million shares, although a good chunk of it is attributable to trdaing of Gulf Resources. Otherwise it would be a very quiet day. Volume favours
buyers eight to seven.

On a sector basis, nine of the TSE’s 14 groups are flat to positive. There’s really not much momentum either way. The upside is led by paper stocks and oil and gas plays. Pipelines and miners are weak. Reports that OPEC will be keeping prices high is helping the energy stocks, while a massive asset purchase by Domtar is boosting paper stocks.

Soothing comments about low inflation from U.S. Federal Reserve Board Chairman Alan Greenspan, delivered at a weekend conference, have kept a positive, if mellow, tone in the markets.

Gulf Canada continues to lead trading with 11.4 million shares crossing the tape, although the price has moved just 2¢ to the downside incidentally. Nortel Networks, on the other hand, is up 2¢ as it unveils a host of new products at an industry tradeshow for the optical business. Negative sentiment in the industry, however, and reports of option repricing for Nortel employees, may be restraining the stock.

A mixed bag of companies are joining Nortel on the upside. Pivotal, Rogers Wireless and Microcell are representing the techs among winners, joined by a mix of names such as Dynacare, Ivaco, Hollinger, Pacific Northern Gas, Trilon, Moore Corp. and Ensign Resources. Abitibi is leading paper stocks
higher on news of the US$1.6 billion Domtar deal.

Courage Energy has gained 4% on news of a takeover bid. Whereas a $300 million outsourcing deal with Laurentian Bank is helping CGI to a 5.3% gain in active trading. The banks, themselves, are mostly positive.

On the downside it’s a similar scene. There’s not much sector momentum, leading to a mixed bag of movers. Certicom is the disaster du jour, dropping 30% after it reported poor results and cut 30% of its employees as a result. Other losers include Bombardier, Exfo Electro, Calpine, Co-Steel, MDS,
Methanex and ATS Automated Tooling.

In New York, stocks are flat too, with markets hanging onto modest gains for the most part. The Dow Jones industrials index is up just 12 points to 11003. The NASDAQ composite index is up five ticks to 2155. The S&P is up two ticks to 1262.

The CDNX is also seeing gains today, up 13 points to 3365. Volume is soft at 14.1 million shares. Miners, oils and techs are all registering minor gains. Kingsway International Holdings is the top trader, though it’s down 26% to 46¢ on 1 million shares.