Stocks are stuck in a narrow range today, with the S&P/TSX index up just three ticks at midday to 6,564.

Volume is robust at 128 million shares, with the buying overwhelming the selling by a 28:13 margin. Market breadth is also bullish, as winners outnumber losers by about nine to eight.

On a sector basis, there’s some modest strength in real estate, telecom, and consumer staples. The golds are weaker, as are materials. But there’s not so much as a 1% move by any sector in any direction.

Nortel Networks is the top trader, down about 1% on 23.4 million shares. Zarlink Semi and CGI Group are also down, too.

The golds are active, and they are sliding despite the increase in gold prices. Barrick has dropped 2% in active trading. And, there is weakness in Goldcorp, and Placer Dome. Bema Gold and Eldorado Gold are up.

The financials are busy again today, but the price moves aren’t that big. CIBC and TD bank are both down a couple of ticks. Sun Life is down 2%.

KeyWest Energy is that unusual animal, a takeover target that slumps on news that it is being bought. The stock is down 6% to $3.31 on heavy volume of 2.6 million shares. Viking Energy is buying KeyWest for approximately $320 million, including assumed net debt of approximately $80 million. In addition, certain petroleum and natural gas properties will be transferred to a separate company to be distributed to the KeyWest shareholders. Viking will acquire KeyWest for $3.65 per share, payable in a combination of cash and trust units, to a maximum total of 28 million units or $66 million in cash. Shareholders of KeyWest will be asked to approve the plan at a special meeting of shareholders to be scheduled for February 2003.

Other losers include Dofasco, Intrawest, Domtar and Westshore Terminals Income Fund.

On the upside, there’ some strength in BCE, as traders digest its latest strategic moves. There are also gains in names such as Acier Leroux, Canadian 88 Energy, Southwestern Resources, Cequel Energy and Quebecor World.

In other business news, Four Seasons Hotels has purchased approximately 400 acres in Celebration, Florida. It plans to build a resort in the planned community, including a 425-room luxury hotel, 18-hole championship golf course, an exclusive enclave of single-family homes and a fractional ownership Four Seasons Residence Club.

Also, Ontario Power Generation and TransCanada PipeLines have formed a 50/50 limited partnership called Portlands Energy Centre L.P. The partnership will assess the viability of developing a natural gas-fuelled energy centre to meet the growing energy needs of Toronto’s downtown core.

Finally, NQL Drilling Tools has closed an offering of three million common shares for total gross proceeds of $24,667,500.

In New York, stocks have traded in a narrow range all morning. The Dow Jones industrial average is down 13 points at midday to 8,434. The S&P 500 is unchanged at 891. The Nasdaq composite index has gained a single point to 1,363.

The S&P/TSX Venture index is the market with the most conviction today, gaining seven points to 1015. Volume is strong at 24.9 million shares. Atcama Minerals is leading the trade, flat at 59¢ on 1.13 million shares.