(Updated at 10:10 a.m. ET/ 1410 GMT)

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

record high on Wednesday in a broad-based rally, as investors

remained optimistic about the possible outsized interest rate

cut by the Bank of Canada next week.

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

was up 115 points, or 0.47%, at 24,554.08 and eclipsed

the record high hit on Friday.

At least ten sectors on the index logged gains, led by the

healthcare sector which jumped over 1%, followed by

rate-sensitive real estate and utilities.

The materials sector also rose 0.7%, supported by

gold prices that gained on weaker equities and bond yields,

while copper prices also gave a helping hand.

"This is more of a followthrough from yesterday's news with

the CPI print coming in lower than expected at 1.6%" which is

below the Bank of Canada's 2% target, said Ian Chong, investment

professional at First Avenue Investment Counsel.

Chong added there is a strong case for a half point rate cut

on Oct. 23 and "this should be supportive for the Canadian stock

market".

The BoC has offered three quarter-point cuts this year and

traders see a 79.3% chance for a 50-basis-point cut at the

policy meeting next week.

Canada's information technology sector was the

only outlier, dropping 0.6%, in line with Wall Street's

tech-heavy Nasdaq index losses.

Among datasets, Canadian factory sales fell by 1.3% in

August from July on lower sales of primary metals, as well as

petroleum and coal products.

Separately, Canada's housing starts rose less than expected

in September with increased groundbreaking on multi-unit and

single-family-detached urban homes.

Across the border, investors parsed quarterly earnings from

major banks, including Morgan Stanley ( MS ) that reported

strong third-quarter profit.

Among individual stocks, Saudi Arabia's Manara Minerals is

in advanced talks to buy a minority stake in Canadian miner

First Quantum Minerals' ( FQVLF ) Zambian copper and nickel

assets. Shares of First Quantum rose 4.8% in early trading.