December 2, 2008 / 5:52 PM / 10 years ago

CANADA STOCKS-TSX rises on commodities despite Manulife

*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) 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.

The rise follows a tumble of 864.41 points, or 9.32 percent, on Monday — the index’s biggest percent decline since October 1987 — on a deluge of grim U.S. economic news.

For most of the morning, the index was in negative territory as “there is still concern about the economy as a whole,” said Sal Masionis, stockbroker at Brant Securities.

On the upside, Suncor Energy Inc (SU.TO) rose 3 percent to C$24.65. The broader energy sector rose 4.2 percent even though the price of oil was flat at around $49 a barrel. [ID:nSP196932], while the mining-heavy materials group gained 2.7 percent. Both fell hard on Monday.

Miner Barrick Gold (ABX.TO) rose 4 percent to C$34.09.

Rogers Communications Inc (RCIb.TO) said on Tuesday that its founder, Ted Rogers, has died at age 75. [ID:nN02547016] Shares of Rogers fell 1.4 percent to C$34.05. ($1=$1.24 Canadian) (Reporting by Jennifer Kwan; editing by Peter Galloway)

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