By James Langton

(May 1 – 13:00 ET) – May Day is turning in a strong market rally in Toronto. The Toronto Stock Exchange 300 composite index is up 157 points to 9,504. Volume is strong at 63.2 million shares, almost 3 to 1 in favour of buyers. Advances are ahead of declines almost 5 to 4.

Golds, pipelines and financials are the only sectors on the downside. The upside is being led by the techs once again. The industrials and utilities are up about 3% each. Software and biotechs are notably strong, too.

Banks are sliding this morning, on heightened interest rate expectations. Some of the air is draining out of the mutual fund companies, too, as the merger hype ebbs away in Trimark, Mackenzie and C.I. Sun Life is leading the insurers down.

In tech stocks Nortel Networks and BCE are both up strongly. 724 Solutions and Descartes Systems are leading the software firms. Angiotech and QLT Phototherapeutics are the hottest biotech plays.

QLT is getting a boost on the news that Axcan Pharma is buying the rights to its Photfrin cancer treatments. Nortel is rallying on a $200 million deal with Telus, extending an existing relationship. BCE is also finalizing its spin-off plans for Nortel.

In New York both sides of the market are up, too. The Dow Jones industrial average has gained 93 points to 10,826. NASDAQ has added 116 points to 3,976. The Standard & Poor’s is up 20 ticks to 1472.

The CDNX has gained 48 points to reach 3607 on average volume of 18.1 million shares. Techs are up strongest, joined by miners, although energy stocks are sliding. Aqua 1 Beverage Co. is the hot trade of the day, up 37.5% to 22¢ on 3.2 million shares.