(Updates prices, adds sector details) Jan 22 (Reuters) - Canada’s main stock index fell on Friday and is set to end the week down 0.7%, dragged by energy and material stocks, after preliminary data showed a sharp drop in retail sales in December. * The nation’s retail sales jumped much more than expected in November, but preliminary figures for December suggest a sharp drop as novel coronavirus restrictions were re-imposed, Statistics Canada said. * The biggest percentage losers on the main index were energy and material stocks, which fell 2% and 1.7%, respectively. ** U.S. crude prices were down 2.7% a barrel, while Brent crude lost 2.4% weighed by worries that new pandemic restrictions in China will curb fuel demand. * At 9:40 a.m. ET (14:40 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 115.24 points, or 0.64%, at 17,800.96. * Aurora Cannabis Inc fell 4.8%, the most on the TSX, after the pot producer raised $125 million in equity. * The second biggest decliner was gold miner OceanaGold Corp , down 4.2%. * On the TSX, 36 issues were higher, while 178 issues declined for a 4.94-to-1 ratio to the downside, with 17.25 million shares traded. * The largest percentage gainers on the TSX were pharmaceutical firm Aurinia Pharmaceuticals Inc, which jumped 3.3%, and discount retailer Dollarama Inc, which rose 1.6%. * The most heavily traded shares by volume were Bombardier Inc, Royal Bank of Canada and Zenabis Global Inc. * The TSX posted one new 52-week high and no new low. * Across all Canadian issues there were 22 new 52-week highs and no new low, with total volume of 42.69 million shares. (Reporting by Amal S in Bengaluru; Editing by Amy Caren Daniel)