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TSX gains 0.9% to post a record high at 22,107.08

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Materials sector climbs 2.8% as gold rises

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Alamos Gold ( AGI ) to buy smaller peer Argonaut for $325 mln

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First Quantum discusses investment with Chinese officials

(Updates at market close)

By Fergal Smith

March 27 (Reuters) - Canada's main stock index rose on

Wednesday to a new all-time high, benefiting from investors

adding more shares in mining and financial companies to their

portfolios near the end of the quarter.

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

ended up 194.56 points, or 0.9%, at 22,107.08,

eclipsing the record closing high it posted last Thursday at

22,087.26.

The index is on track to advance 5.5% in the first quarter

ending on March 31, adding to a gain of 7.25% in the previous

quarter, as investors grow more optimistic of a soft landing for

the economy that could particularly help cyclical stocks.

"The TSX is benefiting from continued renewed interest in

the commodity sectors," said Colin Cieszynski, chief market

strategist at SIA Wealth Management.

"The sector rotation is going Canada's way. ... We've seen a

general strengthening in banking stocks which is also good for

Canada."

Together, the financial, energy and materials sectors

account for 60% of the Toronto market's weighting.

The materials sector, which includes precious and base

metals miners and fertilizer companies, climbed 2.8% as the

price of gold rose.

Alamos Gold ( AGI ) was up 6.9% after the company said it

would acquire Argonaut Gold ( ARNGF ) for $325 million in an

all-stock deal.

First Quantum Minerals ( FQVLF ) was also a standout. Its

shares gained 6.8% after Reuters reported executives from the

miner met with Chinese government officials last week to discuss

funding and business options involving top investor Jiangxi

Copper.

Financials added 0.8% and energy was up 0.6%. The price of

oil settled 0.3% lower at $81.35 a barrel, but was trading not

far from its highest level since October, which it touched last

week.