By James Langton

(February 29 – 13:00 ET) – Markets are leaping ahead today on renewed strength in Yankee tech stocks and a lack of negative data to crimp the market recovery. The TSE 300 is up 77 points to 9,300 today. Volume is average at 113.6 million shares, almost 2:1 in favour of buyers. Advancers are ahead of decliners about 23:19.

On a sector basis, industrials and utilities are recovering recent losses to drive the index higher. Consumer products is the other strong sector. Five of the TSE’s 14 groups are on the downside, led by miners down 2%. Most of the other slides are moderate.

The budget seems to be having minimal impact on the financials which are flat at midday. Analysts generally viewed the budget as a positive for the markets, with the only real surprise being how quickly the foreign content limits will be raised and that bracket creep is being halted. Strong bank earnings from BMO and Scotia haven’t done much to spur traders either.

Takeover targets Newbridge Networks, CTV inc. and St. Laurent Paperboard are all trading actively and to the upside today.

Tech stocks are leading the positive moves though. 724 Solutions is up 7.4% to $260 per share. Strong moves are following in Open Text, JDS Uniphase, Sierra Wireless, Ballard Power and biotechs, QLT Phototherapeutics and Angiotech Pharmaceuticals.

On the downside, Westport Innovations and Mednet International are off sharply. Second Cup has dropped 25%. Certicom is down 5%. Paper stocks Weyerhaeuser and Domtar are sliding. Both Shaw Communications and General Motors are down too.

The small caps have powered through yet another milestone, breaking the 3,800 barrier on the way to doubling the index level since the end of November. The CDNX is up 31 points to 3,807 on average volume of 48.2 million shares. Technology shares are powering the gains, up almost 3%. Miners and energy stocks are both down. Inlet Resources Ltd. is the top trader, up 5% to 29¢ on almost 2.2 million shares.

In New York, stocks are driving higher on some heavy merger action and a general benign interest rate environment. The Dow is up 66 points to 10,103. And for a change the Nasdaq and Dow aren’t moving in opposite directions, Nasdaq is up 89 points to 4,667. The S&P has added 9.5 points to 1,357.