Stocks are modestly weaker today, as some expected softening in commodity prices hits high-priced resource stocks. At midday, the S&P/TSX composite index is down 21 points to 8,787.

Volume is on the soft side yet again, with just 131.7 million shares traded. The volume is heavily bearish, as selling action swamps the buying by a 43:18 margin. Market breadth is also negative, with losers holding a 23:14 edge on winners.

On a sector basis, almost every group is down. The sole holdouts are real estate, utilities and financials.

The downside is being led by miners, down 2.6%. Health care stocks have taken a 2.4% knock, and there is selling in golds, energy and materials.

Profit-taking is driving selling in resource names such as Noranda, down almost 5%. There is also notable weakness in Fording, Teck, Northgate Exploration, Canadian Superior Energy, Petro Canada, Penn West and EnCana. Alcan is down another 1.1%. CN Rail is also weaker.

The only resource area showing any strength in the forestry business. Domtar is leading the way, gaining 0.6% in active trading. It is joined by buying in Canfor, Slocan and West Fraser Timber.

This all comes against a big, 9.9%, loss in Sino-Forest. It is down after issuing a news release at the request of the Toronto Stock Exchange, confirming that it has engaged a financial advisor to assist the company in preparing for a proposed equity offering.

Techs, telecoms and biotechs are also a weak spot today. Nortel is down 1% in relatively light trading. Manitoba Telecom has dropped 2%, and Wi-Lan is weaker. But, BCE is up 1%, and Cognos is higher too.

Biovail is the day’s big loser, dropping 10% in heavy trading on news of its latest results and lowered guidance. It reported a fourth quarter net loss of $96 million, compared with fourth quarter 2002 net loss of $102.8 million. The full-year loss was $27.3 million, compared with net income of $87.8 million in 2002.

The firm also lowered revenue guidance from $880 million to $1.1 billion range to a range of $800 million to $940 million. It also reported that it has commenced arbitration proceedings against Teva Pharmaceuticals concerning alleged were improper deductions.

Biomira is down 7.4%, although there is no news from the firm. But, there is buying in Cipher Pharma, and TLC Vision.

Scotiabank is rallying the financial group higher, gaining 1.5%, after yesterday’s solid results. People are also bargain hunting CIBC, pushing it 1.2% higher. TD Bank is up a bit, too. Royal Bank continues to take hits for its recent results, and there is selling in Sun Life Financial and Bank of Montreal.

There is also some strength in Nikos Resources and CHC Helicopter. Dynatec is 3% higher on news that of a preliminary gas-in-place estimate of 65 billion cubic feet at its Anthem coal-bed methane project in West Virginia.

In earnings news, Paramount Energy Trust earned $52.4 million in 2003.

On the M&A front, Interbrew SA is merging with Brazil’s Cia. de Bebidas das Americas to create the world’s second-largest brewer.

In New York, the markets have been modestly weaker all day. The Dow Jones industrial average remains down 12 points at midday to 10,579. The tech-heavy Nasdaq composite index has added 12 ticks to 2,028.

The Institute for Supply Management’s non-manufacturing index fell 4.9 points to 60.8, which was below consensus expectations. The reading on the U.S. service sector is still solidly in growth territory, but the survey betrayed weakness in the new orders and employment indices.

The small-cap S&P/TSX venture composite index is down 15 points to 1884. Volume is average at 43.7 million shares. Searchgold Resources Inc. is leading the trade, up 4¢ to 33¢ on 1.8 million shares traded. It reported that it has recovered over 8,000 diamonds from a project in Guinea, West Africa.