CANADA STOCKS-TSX falls as Manulife weighs on financials

Thu Aug 5, 2010 10:35am EDT
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*TSX down 40.35 points, or 0.34 percent, at 11,804.70

*Manulife, down 9.6 percent, weighs on TSX (Adds details, quote)

By Jennifer Kwan

TORONTO, Aug 5 (Reuters) - Toronto's main stock market index fell on Thursday morning as resource shares declined and financial shares dropped after a steep quarterly loss posted by Manulife Financial Corp (MFC.TO: Quote).

Manulife, Canada's largest life insurer, dropped 9.6 percent to C$14.46. [ID:nN05256071] Its results followed those of Sun Life Financial (SLF.TO: Quote), which reported after the bell on Wednesday that its net profit was cut by more than half on turbulent market conditions in the second quarter. [ID:nN04261095]

Sun Life was down 3.2 percent at C$27.69.

"Both Manulife and Sun Life, the No 1 and No 3, reported. The market was obviously disappointed," said John Kinsey, portfolio manager at Caldwell Securities Ltd.

"Most people expected bad results and the usual suspects were at fault there -- volatility in equity markets in the second quarter and lower interest rates," he said.

At 10:09 a.m. (1409 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 40.35 points, or 0.34 percent, at 11,804.70. Financials, down 1.4 percent, led the way lower.   Continued...