By James Langton

(February 9 – 13:00 ET) – Markets are taking a beating, today, thanks to a drop in tech shares. At midday, the Toronto Stock Exchange 300 composite index is down about 126 points to 8954. Volume is robust at 82.9 million shares, favouring sellers about 4:3. Losers are outnumbering winners about 17:13.

Eight of the TSE’s 14 sub-indices are down, led by the industrial sector which is down 4.3%. Consumer stocks and real estate are down, too, but most of the individual stock slides are moderate. The upside is all old economy issues, concentrated in miners, oils and paper stocks.

The market is slamming Nortel. It’s off 6.3% on heavy trading of 8.4 million shares. Reports of an Securities and Exchange Commission investigation into possible accounting irregularities at Nortel’s rival Lucent is, ironically, hurting Nortel. So are general profit worries for techs and telecoms.

Caught in Nortel’s jet wash are JDS Uniphase, Celestica, Exfo Electro, Sierra Wireless, BCE Emergis, Janna and Ballard Power. QLT is also sliding off yesterday’s high. Northern Financial is surrendering its recent gains, too. Encal continues to slide in heavy trading, in contemplation of its takeover by Calpine.

The upside is a mixed bag comprising Compton Petroleum, Abitibi, Bombardier, Burlington, Precision Drilling, Great Lakes Power and Pen West Petroleum.

The financials are more or less flat, with some bank up, some down and a similar picture among the insurers. Mackenzie Financial is the top trader, moving more than two million shares on its way to an unchanged day.

In New York, a rather morose tone has set in to trading too. The Dow Jones industrial index is off 58 points to 10823. The Nasdaq composite index is down 58 points too, to 2504. Of course Lucent is down, as is Dell amid reports its about to chop 10% of workers. Oracle is down sharply after analysts took their hatchets to the firm’s stock. Retail, tobacco and financials are generally helping hold the fort.

A drop at the CDNX makes the down day a complete roust. It’s down 23 points to 3245. Volume is 23.2 million shares, with miners, oils and techs all heading south. Tempest Energy Corp. is the top trader up 650% to $1.50 on 2.85 million shares.