By Jeff Sanford

(August 23 – 17:30 ET) – Anti-climatic was the word of the day as the TSE backed off its record setting pace in the wake of yesterday’s Federal Reserve Committee meeting.

Following on the heels of its record setting finish yesterday, the TSE was down at the opening bell. The market gained 4.34 points at noon but eventually finished the day down 29.40 points at 11,107.80.

The decline was reflected in the sub-indices, where 10 of 14 finished lower. Only gold and communications lost more than 1%, though. Leading on the upside were the metals and oil and gas, up 1.44% and 2.06% respectively.

Among individual stocks advancing issues outnumbered declining issues, 566 to 542. Total volume on the day was 164 million shares traded.

Heritage Concepts is still the market favourite, with over 14 million shares trading hands.

The second most popular issue today was mining play Rio Algom Ltd., which is the subject of a hostile takeover bid by Noranda Inc. and Nacinial del Cobre (Chile’s state-run miner). Although over 6 million shares were traded, Rio Algom, finished the day where it started, at $26.25.

Also active was Bombardier, up $1.20 to $23.95, and Clearnet up 75¢ on news of the Telus takeover. Stock in Telus closed up $1.85 to $37.85.

Nortel Networks lost $1.15 to close at $120.70.

The CDNX finished the day down 20.96 points at 3,376.95.

Surprising today was the sound of the loonie hitting the floor. The Canadian dollar dropped to US67.36¢, from US67.74¢ yesterday. The fall was in reaction to the Australian and New Zealand dollars which both dropped precipitously, the Australian dollar shed 2¢ in 24 hours. As a secondary currency the Canadian dollar often rises and falls in concert with those two regional currencies.

The story was similar in U.S. markets, where the “exuberance” over yesterday’s Fed action was muted. Though major indices finished the day up, they were up just barely. With the Fed meeting out of the way and the market too far ahead of third quarter earnings season there is no overall story to the market and hence no aggressive trading.

Some activity was seen around oil stocks as another plunge in inventories boosted the price of crude.

Overall then, the Dow finished the day up 5.50 points at 11,144.65, the Nasdaq composite finished the day up 52.79 points at 4,011.00 and the S&P 500 finished the day at 15,05.97, a gain of 7.84 points.