CANADA STOCKS-TSX tumbles 1 pct as Manulife weighs

* 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
C$27.29.

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.
[ID:nN18483228]

"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
11,524.47.

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)