A surprise decision by OPEC to cut oil production by 5% is boosting the price of crude, and bolstering energy stocks. Although this is helping to offset weakness in technology and biotech issues, the S&P/TSX index is down 10 points at midday to 7,634.

Volume is strong at 151.3 million shares, with the selling edging the buying by a margin of almost four to three. Market breadth is much closer to even, with winners outnumbering losers 26:25.

The health care group is down more than 3% today. Techs are also seeing some profit taking, and there is more modest weakness in golds and utilities. Energy names are up 1% though, and there is some buying in industrials, and real estate.

The rally in oil prices is boosting the major producers, with EnCana gaining 1.2%, Suncor is up 1.4%, and Ivanhoe Energy has jumped almost 18% in heavy trading.

Telus is leading the telecom group higher, gaining 1.5%. BCE is down a little though. Nortel is up 1% in the tech group, but this is not enough to overcome selling in Zarlink Semi, Research in Motion and Infowave Software. However, there are also gains in Mitec, Open Text, Wi Lan, Call Net and Ballard Power.

The bigger tech trouble is in the biotech group though, where AEterna Laboratories has dropped almost 40% after it released its results of a phase III trial in its antiangiogenic compound to fight a form of kidney cancer. Results showed that the drug did not improve overall median survival time.

Biovail is down 3.6% in active trading. Oncolytics Biotech has fallen more than 7% after revealing it has entered into a bought-deal agreement with Canaccord Capital Corporation for a $5 million offering. The net proceeds from the offering will be used to finance clinical trials and for general corporate purposes.

The gold stocks are down, despite some strength in Bema Gold. Barrick is down 1.4%, and Cambior has dropped almost 5%.

Wheaton River is down 4.2% after it said it would do a $100 million bought deal with Griffiths McBurney & Partners, and a syndicate of underwriters including BMO Nesbitt Burns Inc., Canaccord, Orion Securities Inc., Sprott Securities Inc., Research Capital Corporation and Fort House Inc. The company plans to use the net proceeds of this financing for the advancement of its mineral properties, potential acquisitions and for general corporate purposes.

Placer Dome has agreed to enter into a joint venture with Newmont Mining Corporation at Turquoise Ridge in Nevada. Placer Dome will own 75% of the joint venture and will be the operator. Placer says that it will realize significant savings in the form of lower operating costs and improved recoveries, as a result of the JV.

Gabriel Resources has completed its financing with a syndicate of underwriters led by Griffiths McBurney and BMO Nesbitt., and including CIBC World Markets Inc., Dundee Securities Inc. and TD Securities Inc., for total gross proceeds of $45.75 million. The net proceeds will be used to advance the continued development of Gabriel’s gold project in Romania and for general corporate purposes.

There is also selling in Canadian Zinc, Husky Injection Molding and Atlas Cold Storage.

The banks are mixed today, with Royal Bank off 0.5% on some negative headlines. Scotia is taking up some of the slack, as is CIBC.

On the upside, Bombardier is rallying, as is Sears Canada and Diagnocure.

In other news, Maax’s board has engaged Merrill Lynch as financial adviser and Borden Ladner Gervais LLP as legal adviser, to assist the independent committee to manage its sale.

Intertape Polymer has successfully completed its $50 million offering on a bought-deal basis to a syndicate of underwriters led by TD Securities. Intertape will use the net proceeds from the public offering to repay short-term indebtedness (but not reduce the banking syndicate’s commitments thereunder) and long-term indebtedness to its banking syndicate.

Cabletel Communications says it has progressed with its negotiations to restructure the payment terms of its US$2.2 million senior subordinated promissory note issued to one of its major suppliers. It has obtained the consent of the payee to make reduced payments on the note, while negotiations are continuing.

In New York, stocks opened with little direction, but have taken to a slide in late morning, as some traders worry about the economic recovery, particularly if oil prices head higher. The Dow Jones industrial average is now down about 95 points to 9,481. The Nasdaq composite index has lost 31 points to 1871. The S&P 500 is off 13 points to 1,016.