Stocks are taking a hit today, as traders fret over the impact of the Enron debacle. Meanwhile, theyÕre trying to gauge the prospects for recovery. At midday the TSE 300 is down 52 points to 7639. Volume is average at 78 million shares, with buyers holding a slight 18:17 advantage over sellers. However, declining issues outnumber winners by 25:19.

Techs are taking a hit today after Microsoft’s Bill Gates offered a dim view of his sector’s prospects this year. Hardware stocks are down almost 3%, and software has lost more than 2%. Miners, conglomerates, financials and energy
stocks are all down, today.

The most active issues today are AEC and Pan Canadian, but the price action is very limited, as traders jockey for position around this merger deal. Hurricane Hydrocarbon is rallying impressively today, up about 8% on oilpatch M&A action.

Nortel Networks is leading the techs down. It is off more than 3% in active trading a move against the sector, rather than the stock itself. Nortel is joined by CGI Group, ALI Technologies, Research in Motion and Descartes Systems on the downside.

Financials are taking a pounding today, led by the banks. CIBC continues to take a beating. Bank of Nova Scotia is down on more gloomy reports from Argentina. TD Bank is down too. Sun Life is the bright spot. ItÕs rallying in active trading.

Bombardier continues to feel the heat today. It is down another 5%, and it reveals that it has been targeted by a mini-tender offer from TRC Capital Corp.

Other losers include Extendicare, QLT and Ballard Power.

Golds are the only safe haven of this market, although there are modest gains in pipelines, utilities and insurers. The gold bugs may be the only group enjoying today’s trade. Barrick is up 1.6% in active trading. Glamis Gold is up 5.4%, and there are strong gains in Franco Nevada, Goldcorp, Meridian Gold, Placer Dome and Kinross.

Other gainers include Richelieu Hardware and CryptoLogic Inc, which reported that it earned US$18.1 million in 2001.

The S&P/CDNX Composite Index is bucking the trend today, gaining three points to 1,136. Volume is robust at 21 million shares. Shear Minerals is leading the trade, up 12.5% to 36¢ on more than 1.5 million shares.

In New York, the vague fear of accounting issues has traders pulling in their horns, as do the Gates comments. At midday, the Dow Jones industrial index is down 119 points to 9787. The Nasdaq composite index is off 43 ticks to 1868. The S&P is down 18 points to 1104.

In other news, St. Lawrence Cement Group reported net earnings were $62.2 million in 2001, compared with $48.5 million in 2000. Danier Leather says that it plans to buy back up to 280,806 shares, or 5% of its float.