By Jennifer Kwan
TORONTO (Reuters) - Toronto's main stock index skidded on Thursday as oil prices dropped and shares of Manulife Financial tumbled after it surprised investors with a C$2.5 billion stock offering.
Shares of Manulife, which topped the list of movers on the downside, fell 6.1 percent to C$18.95, as investors reacted to its big equity issue. Manulife said late on Wednesday it planned to build "fortress level" capital reserves, but acknowledged the issue would be dilutive to earnings per share and return on equity.
"It was an unexpectedly large issue and it took the market by surprise," said Lex Kerkovius, senior research analyst at McLean & Partners Wealth Management Ltd in Calgary.
The S&P/TSX composite index finished down 52.39 points, or 0.45 percent, at 11,600.30, with eight of its 10 main groups lower. The drop ended a four-session winning streak for the index.
The TSX financial sector finished the day down 1.1 percent, with shares of some banks sliding. Toronto-Dominion Bank fell 0.7 percent to C$67.81, while Royal Bank of Canada fell 0.78 percent to C$57.55.
Other names weighing on the broader market were EnCana Corp, down 2 percent at C$56.67, and Suncor Energy which slid 0.8 percent to C$38.25, as oil prices fell amid weak U.S. equity markets and concerns about a recovery in demand in the United States.
($1=$1.06 Canadian)
(Reporting by Jennifer Kwan; editing by Rob Wilson)
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