CANADA STOCKS-TSX tumbles 1 pct as Manulife weighs

Thu Nov 19, 2009 10:52am EST
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 * TSX falls 128.22 points to 11,524.47
 * Manulife sags on news of C$2.5 bln offering
 (Adds details, background)
 By Irene Kuan
 TORONTO, Nov 19 (Reuters) - Toronto's main stock index was
down more than 1 percent on Thursday morning, dragged lower by
Manulife Financial MFC.TO as investors reacted to a major
stock offering by the country's biggest insurer.
 Shares of Manulife were down 7 percent at C$18.72, while
fellow insurer Sun Life Financial SLF.TO sagged 5 percent to
 After markets closed on Wednesday, Manulife said it planned
to issue C$2.5 billion ($2.3 billion) in equity to build
"fortress level" capital reserves, but acknowledged the issue
would be dilutive to earnings per share and return on equity.
 "We've had such a strong market in a short period of time
and oftentimes you just need a little trigger to get people to
sell," said Ian Nakamoto, director of research at MacDougall,
MacDougall & MacTier.
 The TSX has rallied 54 percent since falling to a five-year
low in March.
 At 10:35 a.m. (1535 GMT), the S&P/TSX composite index
.GSPTSE was down 128.22 points, or 1.1 percent, at
 A 1.4 percent slide in the energy sector also contributed
to the overall decline as oil prices fell on concerns over a
recovery in demand in the United States. [O/R]
 Suncor Energy SU.TO fell 1.6 percent to C$37.93, while
EnCana Corp ECA.TO was down 1.8 percent at C$56.81.
 ($1=$1.07 Canadian)
 (Editing by Rob Wilson)