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TSX ends up 0.4% at 25,648.00

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Posts largest monthly gain in one year

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Canada's economy grows 1% in third quarter

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Technology sector rises 1%

(Updates at market close)

By Fergal Smith

Nov 29 (Reuters) - Canada's main stock index extended

its November gains on Friday, moving to a new record high, with

technology and industrial shares rising as investors welcomed

greater clarity about the economic outlook following the outcome

of the U.S. election.

The S&P/TSX composite index ended up 104.48

points, or 0.4%, at 25,648.00, eclipsing the record closing high

it posted on Thursday. For the month, it was up 6.2%, its fifth

straight monthly gain and the largest since November last year.

"We've climbed that wall of worry," said Greg Taylor,

portfolio manager at Purpose Investments.

"There was a lot of nervousness heading into the (U.S.)

election and now we've got at least more clarity with what's

going on. We've got more confidence that there's going to be

some more growth aspects in the U.S. and that should help

earnings as the economy keeps going and regulation falls back."

U.S. President-elect Donald Trump has pledged to cut taxes

and loosen business regulations.

While those measures could boost the economy, the potential

for higher fiscal deficits under the Trump administration, as

well as inflationary tariff and immigration policies, could

reduce prospects for Federal Reserve interest rate cuts and

raise long-term borrowing costs, say analysts.

"The big thing everyone is going to be watching is just what

happens with (bond) yields and the (U.S.) dollar going forward,

because if yields and the dollar keep going higher that's going

to be a pretty big headwind," Taylor said.

The Canadian dollar posted its third straight monthly

decline against its U.S. counterpart in November as Canada's

economy grew just 1% in the third quarter, prompting investors

to raise bets on another outsized interest rate cut from the

Bank of Canada.

The technology sector added 1% on Friday and industrials

were up 0.5%. Seven of 10 major sectors ended higher.