CANADA STOCKS-TSX rises on commodities despite Manulife

Tue Dec 2, 2008 12:47pm EST
 
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*TSX higher on commodities after 9 pct tumble on Monday

*Manulife falls on profit warning, new equity issue

*Ted Rogers dies at 75; Rogers shares fall (Adds quotes, details)

By Jennifer Kwan

TORONTO, Dec 2 (Reuters) - The Toronto Stock Exchange's main index struggled higher in choppy activity on Tuesday as firmer commodity issues overcame a drop in financials on Manulife Financial Corp's MFC.TO warning that it will post a quarterly loss and issue more than C$2 billion in new stock.

Manulife, which dropped 3.2 percent to C$19.80, was the most heavily-traded stock. The financial sector as a whole fell 1.4 percent with Bank of Nova Scotia (BNS.TO: Quote) down 1 percent at C$34.46 after reporting a 67 percent drop in quarterly profit.

Manulife said it would report a fourth-quarter loss of C$1.5 billion due to sliding markets and issue C$2.1 billion in common equity to bolster its capital position. [ID:nN02548876]

"That will cast a shadow across the Canadian financial services industry today because it's never good to have dilutive equity," said Paul Taylor, chief investment officer at BMO Harris Investment Management Inc.

Shortly before 12:30 p.m. (1730 GMT), the S&P/TSX composite index .GSPTSE was up 35.57 points, or 0.42 percent, at 8,441.78, with most of its 10 main groups higher.   Continued...