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TSX ends up 0.5% at 22,375.83

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Eclipses April 9 record high

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Materials sector gains 2.2% as metal prices rise

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Manulife Financial ( MFC ) ends up 4.7% after earnings beat

(Updates at market close)

By Purvi Agarwal and Fergal Smith

May 9 (Reuters) - Canada's main stock index closed at a

record high on Thursday, led by gains for financial and resource

shares, as investors cheered the Bank of England's dovish shift

and a decline in long-term borrowing costs.

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

ended up 116.67, or 0.5%, at 22,375.83, eclipsing the

record closing high it notched one month ago.

The index hit the new high despite recent global

geopolitical tensions and sharp swings in bond yields.

"It seems that markets keep climbing the wall of worry,"

said Greg Taylor, portfolio manager at Purpose Investments. "It

is good to see yields are pulling back a little bit. I think

that's the big win today."

The U.S. 10-year yield, a global benchmark, eased 2.6 basis

points to 4.457%. It is down roughly 28 basis points from its

April peak.

The Bank of England paved the way for the start of interest

rate cuts as soon as next month.

"The Bank of England was a little more dovish in signaling

that rate cuts are coming. I think that's just a reminder that

the Bank of Canada is probably going to be following the same

path in the near term," Taylor said.

The materials group, which includes metal miners

and fertilizer companies, was up 2.2% as gold and copper prices

climbed.

Nutrien Ltd ( NTR ), the world's biggest fertilizer

producer, beat first-quarter profit estimates on strong demand

for crop nutrients. Its shares added 4.5%.

The price of oil also rose, settling 0.3% higher at

$79.26 a barrel. Energy added 0.7%, while heavily

weighted financials were up 0.6% as Manulife Financial

Corp ( MFC ) shares gained 4.7% after the insurer reported

better-than-expected quarterly profit.

Auto parts manufacturer Linamar Corp ( LIMAF ) was another

standout. Its shares jumped 6.8% after the company's

first-quarter sales beat analysts' expectations.