Early strength among tech issues has been overcome by weakness in energy stocks at midday. On the first trading day of 2002, the TSE 300 is down 55 points to 7,633.

Volume is weak at just 40.6 million shares, as many traders take extended vacations.

The volume is almost evenly split between buyers and sellers, but losers have a decisive nine to seven lead over winners.

Energy stocks are the weakest group on commodity price worries, and a downgrade from UBS Warburg. They are off about 4%, and are joined on the downside by pipelines, real estate, media stocks and financials.

Techs are up notably, but they are virtually alone on the upside.

Nevertheless, Nortel Networks is starting the year with a 2% gain. Celestica is up, as is Solectron, and ATI. There’s also strength in Bombardier, Maple Leaf Foods, Altarex, Air Canada, C.I. Fund and Fairfax Financial.

While traders are jumping into C.I. and Fairfax, they are dumping big financial sector names such as Argentina-exposed Bank of Nova Scotia, Royal Bank and Investors Group.

The energy stocks are very weak, led by a 6% drop in Suncor Energy on active volume. Westcoast Energy, Talisman Energy, Precision Drilling and Petro Canada are all down significantly, too.

Sierra Wireless is getting hammered, off almost 20%, after it lowered its revenue guidance for the latest quarter.

In New York, the song is much the same. The oils are driving the Dow Jones industrial average down by 44 points to 9,977. The Nasdaq composite is holding up better, but still dropping 10 points to 1,941, at the hands of its biotechs. The S&P has surrendered 13 ticks to 1,148.

The S&P/CDNX Composite Index is more or less flat at 1,037. Volume is light there too at 11 million shares. Look Communications Inc is the top trader, up 54% to 20¢ on 2.6 million shares.