As expected, Canada’s markets are lazy today with U.S. markets on holiday. The TSE 300 is down 18 points at midday to 8,275.

Volume is very light at 36 million shares, with sellers holding a slight edge on buyers. Losers have a nine to eight edge on winners.

On a sector basis, 10 of the TSE’s 14 sub-indices are flat or down, but none of the moves are major. Mines are the biggest loser, off 0.8%. Industrials and merchandisers are also down.

Pipelines are the strongest group on the upside, but the action is weak there, too. Media stocks, paper and energy plays are the other groups with gains.

For a change, Nortel Networks isn’t the top trader. It barely makes the top 10. The most active stock of the day is Tethys Energy, which is down 9.5% on 3.1 million shares. It reopened for trading today after announcing last Friday that it has entered into an agreement with Northrock Resources Ltd., which will see Northrock take it out for $175 million in cash and assumed debt.

Nortel is off 1.5% on just 540,000 shares traded. Other losers include Dofasco, Quebecor, Kinross, AnorMed, Cryptologic, Decoma, TD Bank, Mitel, Ultra Petroleum and Gildan Activewear.

Most of the upside is in penny stocks. Names such as 360networks, Eurogas and itemus are up in active trading. Northern Financial is up too, after announcing its opposition to the TSE-CDNX merger.

Other gainers include, TVX Gold, Hydrogenics, Exfo Electro, Empire, 724 Solutions, Trican Well Service, Four Seasons and Dorel.

In business news, Leroux Steel Inc reports its results for the second quarter ended April 28. It recorded a net loss of $1.9 million, or 20¢ a share, compared with a net profit of $6.7-million, or 63¢ a share in the same period of the previous fiscal year. It blames the poor results on a combination of the continuing crisis that has affected the North American steel industry with the downturn in the U.S. economy.

In other news, Petromet Resources and Talisman Energy announced that Petromet’s takeover is going ahead, with 98.6% of the outstanding Petromet shares tendered to Talisman’s offer.

The CDNX, is up 13 points to 3,335. Volume is light at 13.8 million shares. Mines and energy are up, tech is down. Gateway Enterprises Ltd is the top trader in its debut, gaining 62% to 18¢ on 1.2 million shares.