By James Langton

(June 8 – 13:00 ET) – Stocks are bouncing this morning, although trading remains light. The TSE 300 is up 81 points to 9639. Volume is weak at 63.5 million shares. Up volume is ahead of down volume by more than 2:1, and advancers are outpacing decliners 10:7.

A broad range of sectors are up, indeed only mines, forest products and conglomerates are down and their slides are minimal. Utilities are leading the way up, gaining more than 2%. News of Bell Canada International’s proposed joint venture with Telmex in South America is boosting its stock 7% in active trading. BCE is up almost 5%, and Teleglobe has gained more than 6%.

Strong gains are also evident in the energy sector, thanks to both strong prices and the prospect of OPEC production increases. Merger and acquisition activity in the industry isn’t hurting either. Producers, service stocks and the integrated oils are all making strong gains. Precision Drilling, Ranger Oil and Anderson Exploration are all posting good numbers.

Most other sectors are positive, although the gains are slight. Financials are benefiting from aggressive rate action by the European Central Bank this morning. It hiked rates 50 basis points rather than the expected 25. Sun Life is leadng the way in the group, up 2.5%.

Techs are also in the black where news of Microsoft Corp.’s possible breakup is brightening prospects for others in the software business. Strong gains are evident at Research in Motion, JDS Uniphase, 724 Solutions, Mitel and Nortel Networks. Corel Corp. is backing off earlier gains.

In other business news TrizecHahn Corp. is completing the US$1.2 billion sale of most of its Canadian office portfolio, earning it net proceeds of US$700 million.

In New York volume is rather light and the action is mixed. The Dow has slipped 133 points to 10679. News that Procter & Gamble Co. has ousted its chairman and CEO, Durk Jager, and is expecting disappointing results yet again this quarter is slamming the Big Board. Things are a bit brighter, albeit quiet, among technology stocks. NASDAQ is up 26 points to 3865. The S&P 500 is down six to 1465.

The small caps are up slightly in light trading. At midday the CDNX has gained 14 points to 3451 on volume of just 14.3 million shares. Despite the gain, each of its subgroups is down, led by technology. Kemgas Limited is the top trader at just 531,000 shares, up 12% to 48¢.