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TSX ends up 0.3% at 24,302.26

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Energy adds 2.2%; oil settles 3.6% higher

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Materials sector climbs 2.1%

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TD Bank shares tumble 5%

(Updates to market close)

By Fergal Smith

Oct 10 (Reuters) - Canada's main stock index rose to a

record high on Thursday as stronger commodity prices and a

weaker Canadian dollar lifted the energy and materials sectors,

offsetting a sharp decline in the shares of TD Bank.

The Toronto Stock Exchange's S&P/TSX composite index

ended up 77.36 points, or 0.3%, at 24,302.26, moving

past the previous day's record closing high.

"There's two key things that jump out. One is the gold

producers are rallying and two is the energy producers are

rallying," said Philip Petursson, chief investment strategist at

IG Wealth Management.

"Gold is moving up because it's just had positive momentum

over the last number of months. ... Energy has been moving on

geopolitical risk."

The price of oil settled 3.6% higher at $75.85 a

barrel due in part to Middle East supply risks after the recent

sharp escalation of Israel's conflict with Iran.

The energy sector climbed 2.2%, while the materials group,

which includes fertilizer companies and metal mining shares, was

up 2.1% as gold and copper prices moved higher.

A weaker Canadian dollar also supported commodity producers,

said Petursson.

Gold and oil are priced in U.S. dollars, so commodity

producers' revenues increase in Canadian dollar terms when the

currency falls against the greenback.

The loonie touched its weakest intraday level since

Aug. 7 at 1.3775 per U.S. dollar, or 72.60 U.S. cents, as

investors weighed prospects of the Federal Reserve pausing its

interest rate cuts and awaited domestic jobs data, due on

Friday, that could guide bets on the Bank of Canada outlook.

Heavily weighted financials were a drag, falling 0.4%, as TD

Bank became the largest bank in U.S. history to plead

guilty to violating a federal law aimed at preventing money

laundering, and agreed to pay $3 billion in penalties to resolve

the charges. TD's shares tumbled 5%.