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TSX ends up 0.8% at 26,269.00

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Eclipses Monday's record closing high

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Scotiabank adds 1.6% after earnings report

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Real estate rallies 2.6%

(Updates at market close)

By Fergal Smith

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

Tuesday as real estate shares led broad-based gains and after

recent strengthening of the Canadian dollar sent a potential

signal that investors are growing more confident investing in

the domestic market.

The S&P/TSX composite index ended up 195.87

points, or 0.8%, at 26,269.00, eclipsing the closing record high

it posted on Monday.

"Generally the world is a little more bullish on Canada.

Canadian investors are a little more bullish on Canada,"

said Lorne Steinberg, president, Lorne Steinberg Wealth

Management Inc., pointing to recent strength in the Canadian

currency.

The loonie lost ground on Tuesday but has rallied

about 7% since hitting a 22-year low in February.

"There's definitely a move to diversify away from the U.S.

after years of investing basically only in the U.S.," Steinberg

said.

A bruising rollercoaster ride for markets since the start of

the Trump administration has seen some investors move away from

American assets.

The real estate sector climbed 2.6%, led by a gain of 14.8%

for the shares of InterRent Real Estate Investment Trust

after the company announced a deal to be acquired and

as long-term borrowing costs declined.

The Canadian 10-year yield was trading 7.4 basis points

lower at 3.255%, tracking a downshift in U.S. yields.

Consumer staples were another standout, adding 2.2% and

heavily weighted financials were up 1%.

Bank of Nova Scotia missed quarterly earnings

estimates, burdened by a larger than expected sum of money put

aside to shield against bad loans in a challenging environment

riddled with trade uncertainties. Still, its shares ended 1.6%

higher.

The materials sector was the only one of ten major sectors

to end lower, falling 0.2%, as gold gave back some of its

recent gains.