Bullish momentum quickly dissipated this morning, and at midday the S&P/TSX index is down 62 points at 6,548.

Volume remains active at 114.7 million shares, with selling ahead of the buying by about 35:16. Market breadth is also negative, as losers outnumber winners by five to four.

On a sector basis, the market is deeply mixed. Some strength has been retained in the gold, real estate and utilities groups. But, tech stocks are down almost 3%, and there is notable selling in financials, telecoms, consumer plays, industrials and diversifieds.

Fording is the big trade of the day, following the latest machinations in its takeover battle. The stock has slipped a little on a volume of 2.8 million shares.

In the tech group, Nortel Networks has dropped another 1.2% on strong volume of 26 million shares. Zarlink Semi is down almost 10%, and there is weakness in ATI, Cognos, Celestica, Ballard Power, Telus and Shaw Communications.

The banks are following the techs lower again too, with TD Bank down another 1.3%. Royal Bank has dropped more than 1%. Scotia is weaker, too.

Blue chip weakness is also evident in Bombardier, which is down more than 7% at midday. CN Rail is down more than 1%, and Petro Canada has dropped 2.2%. Southwestern Resources is down more than 6%.

Traders are finding some solace in the gold group, with gains in Glamis Gold, Bema Gold, Newmont Mining and Agnico Eagle.

Kinross Gold has completed the previously announced sale of 50 million units to a syndicate of underwriters co-led by Griffiths McBurney & Partners and CIBC World Markets Inc., and including RBC Capital Markets Inc., Scotia Capital Inc. and Canaccord Capital Corporation. Also, Kinross entered into a commitment letter with a syndicate of financial institutions for the provision of a US$125-million revolving credit facility.

Power Corp. has closed an offering of $150 million of the corporation’s first preferred shares. Proceeds from the issue will be used to supplement the corporation’s financial resources and for general corporate purposes. The issue was bought by an underwriting group led by BMO Nesbitt Burns Inc., including Scotia Capital Inc., CIBC World Markets Inc., National Bank Financial Inc., RBC Dominion Securities Inc. and TD Securities Inc.

In earnings news, Tesma International saw its first quarter income climb to $28.62 million in fiscal 2003, up from $22.1 million a year ago. Positively affecting net income for the quarter was $2.9 million in tax refunds. Tesma stock is up more than 4% as a result.

Other gainers include Micrologix Biotech, Teck, Geac Computer and Patheon.

In New York, early bullish momentum has also faded, and the Dow Jones industrial average is now down about 116 points to 8,621. The S&P 500 is 11 points lower at 907. The Nasdaq composite index has shed 17 points to 1,413.

Only the small caps are hanging onto gains. At midday, the S&P/TSX Venture index is one point higher at 960. Volume is strong at 16.5 million shares. William Multi-Tech Inc. is the top trader, with more than 2 million shares moving at a penny apiece.