Canadian Stocks Fall, Led by Manulife Financial; Nortel Plunges

By John Kipphoff

Sept. 17 (Bloomberg) -- Canadian stocks fell for a third day after Manulife Financial Corp. said it will incur costs on investments in American International Group Inc. and Nortel Networks Corp. cut its sales and profit margin forecasts.

The Standard & Poor's/TSX Composite Index fell 170.94, or 1.4 percent, to 12,056.05 at 9:35 a.m. in Toronto.

Manulife, the country's biggest insurer, fell C$1.48, or 4.1 percent, to C$34.52. Nortel, North America's biggest maker of phone equipment, dropped C$1.62, or 28 percent, to C$4.10.

To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.