By Jeff Sanford

(July 4 – 16:30 ET) – The TSE set another record today; the TSE 300 composite gained 105 points to close at 10,301.40. But that good news is tempered by the fact that trading was extremely narrow due to U.S. markets being closed for Independence Day.

Volume on the TSE could almost be described as non-existent, just 56 million shares were traded on the day.

Overall, advancers outnumbered decliners 527 to 472.

The CDNX was also up, it finished at 3,469.28, up 10.61 points, but that too was on narrow volume.

In individual issues, Kasten Chase was up again on news that the encryption software maker has signed a deal with WinMagic Data Security to develop security software for the U.S. government’s National Security Agency. The stock was up 5.23%, to close at $8.70.

With such narrow trading, issues like Dion Entertianment Corp.–up 42% on some 700,000 shares traded — were counted among most active.

Methanex was the most heavily traded stock on the day, though only some 2 million shares traded hands. It rose 2% to close at $5.05. The gain came on news that it has closed a methanol plant in B.C. as it aggressively continues to consolidates its business.

Nortel was also up on the day. It gained $1.85 to finish at $104.55 as it closes in on its 52-week high of $105.67.

Oil prices are trending down as the Saudis have announced they will increase their output to reign in the price of oil to the $25 a barrel range. Presumably they are worried the high price of oil, which usually leads to increased uses of alternative fuels, will undercut their sales.