By James Langton

(July 5 – 13:00 ET) – At midday the Toronto Stock Exchange 300 composite index is up 65 points to 10366. Volume is rejuvenated after yesterday’s paralysis, although, it remains below recent daily averages at just 67 million shares.

Most traders are back to work now, though, some see the week as a write-off with the Canadian and American holidays and lack of big economic news.

Volume is about 7:5 in favour of buyers, although decliners outnumber advancers about 17:13. On a sector basis 10 of the TSE’s 14 groups are up, led by techs, transports and paper stocks.

Nortel Networks is leading the way higher as usual, up 2% on 2.6 million shares. BCE is up a little less than 1%. Also up are Architel, Research in Motion and Wi-Lan. 724 Solutions is up 4% on news of its deal to supply wireless banking to Mexico. ATI is also showing strength on positive comments out of CIBC.

Domtar is leading the paper group higher in heavy buying. Among the financials, Trimark is inching toward its takeout price of $27, now at $26.95 on almost 1.1 million shares.

Oil and gas is leading the losers as oil prices tumble in response to pledges of Saudi output increases. Golds, software and specialty stores are also weak. Renaissance Energy is leading the oils down. It’s off 3% on 2.2 million shares. Also down is Union Gas and Northstar Energy.

Canada’s small caps are weak today. The CDNX is off 14 points to 3458 on average volume of 19.3 million shares. Oils are leading the way down there too, joined by techs and miners. Siegesoft Internet is the top trader, unchanged at 36¢ per share on 2.7 million shares.

In the U.S. markets are less buoyant as earnings season heats up. Analyst downgrades aren’t helping either. The Dow is up just four points at midday to 10563. Nasdaq is decidedly down, off 66 points to 3925. The S&P is down too to 1461, off nine points.

In business news Bombardier’s consortium has been shortlisted for contracts in the London Underground. It is bidding for the Bakerloo, Central and Victoria lines. Infowave Software’s CEO has resigned, to be replaced by its chief operating officer.