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TSX ends up 0.5% at 24,561.20

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Financials rise 0.7%; utilities add 2.2%

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Eight of 10 major sectors post gains

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Energy falls 0.5%; oil hits a two-week low

(Updates to market close)

By Fergal Smith

Oct 16 (Reuters) - Canada's main stock index rose to a

record high on Wednesday, led by bank sector gains as investors

bet on faster interest rate cuts by the Bank of Canada that

would boost the economy.

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

ended up 122.12 points, or 0.5%, at 24,561.20, moving

past the record closing high it notched on Friday.

Financials, the most heavily weighted sector on the TSX,

added 0.7%, as shares of Bank of Nova Scotia ( BNS ) rose 1.3%.

"Banks have been on a tear," said Allan Small, senior

investment advisor of the Allan Small Financial Group with iA

Private Wealth.

"This idea that interest rate cuts in Canada is good for our

banks. I think we're going to see a lot more activity on the

lending side."

Chances of an unusually large 50-basis-point rate cut from

the BoC next week have climbed to roughly 80% from 50% before

the release of cooler-than-expected domestic inflation data on

Tuesday.

The utilities sector, which includes many high-dividend

paying stocks that could particularly benefit from a faster pace

of rate cuts, climbed 2.2%.

The materials sector, which includes fertilizer companies

and metal mining shares, edged up 0.3% as gold and copper

prices rose.

Saudi Arabia's Manara Minerals is closing in on a deal to

buy a minority stake in First Quantum Minerals' ( FQVLF ) Zambian copper

and nickel assets, three people familiar with the details told

Reuters.

Shares of First Quantum increased 2.4%. In contrast,

Barrick Gold Corp ( GOLD ) shares fell 1.7% after the company

said it produced less gold than expected in the third quarter.

Eight of the 10 major sectors ended higher. Technology and

energy both lost 0.5%.

Energy shares were depressed as oil prices hit a two-week

low.