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TSX ends up 0.5% at 30,501.99

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Materials group adds 1.8% as gold surpasses $4,000

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Technology sector gains 2.9%

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MEG Energy ( MEGEF ) jumps 6.4% as Cenovus Energy ( CVE ) raises bid

(Updates at market close)

By Fergal Smith

TORONTO, Oct 8 (Reuters) - Canada's main stock index

rose on Wednesday, led by gains for technology and metal mining

shares, with the latter getting a boost from gold prices

surpassing $4,000 an ounce.

The S&P/TSX Composite Index ended up 150.27

points, or 0.5%, at 30,501.99, moving closer to the record

closing high it posted on Monday.

"It seems to be that every day there's another news story that's

good for gold," said Barry Schwartz, chief investment officer at

Baskin Wealth Management.

Gold surged past the $4,000 an ounce level for the

first time as broader geopolitical and economic uncertainty as

well as expectations of U.S. interest rate cuts sent investors

flocking to the safe-haven asset.

The materials group, which includes metal mining

shares, was up 1.8%.

"For the TSX, you may not have as much upside going forward

but you might see a rotation in some of the names," Schwartz

said, adding that the stocks of some good businesses have lagged

the market's rally, including railroads, convenience store

operator Alimentation Couche-Tard Inc ( ANCTF ) and software

company Constellation Software Inc. ( CNSWF )

Shares of Constellation Software ( CNSWF ) rose 0.8%, while e-commerce

company Shopify Inc ( SHOP ) added 3.3%. The technology sector

was up 2.9% along with gains for U.S. technology

shares.

Four of the TSX's 10 major sectors ended lower.

Heavily weighted financials were down 0.3% and energy

slipped 0.1% even as the price of oil settled

1.3% higher at $62.55 a barrel. Traders expected a lack of

progress on a Ukraine peace deal to keep sanctions in place

against Moscow.

Cenovus Energy ( CVE ) raised its bid for MEG Energy ( MEGEF ),

intensifying a takeover battle for the Canadian oil producer

with rival Strathcona Resources ( STHRF ). MEG's shares rose

6.4%, while shares of Cenovus added 1.8% and Strathcona was up

2.4%.