(Updates at market close)

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TSX ends up 0.8% at 29,407.89

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Eclipses Wednesday's record closing high

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Industrials rise 1.6%, financials add 1%

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Aecon Group ( AEGXF ) shares jump 9.6%

By Fergal Smith

Sept 11 (Reuters) - Canada's major stock index rose to

another record high on Thursday as U.S. data supported bets on

Federal Reserve interest rate cuts and after Canadian Prime

Minister Mark Carney announced five major projects that would be

eligible for fast-track approval.

The S&P/TSX composite index ended up

228.50 points, or 0.8%, at 29,407.89, eclipsing Wednesday's

record closing high.

U.S. consumer prices rose more than expected in August, but a

surge in first-time applications for unemployment aid last week

kept the Fed on track to cut interest rates next Wednesday.

"You are seeing strength in (U.S. stock market) sectors that

are rate-sensitive, like financials, discretionary, materials,"

said Ian Chong, a portfolio manager at First Avenue Investment

Counsel.

"Canada is piggybacking on a lot of that movement, but also

we've had some pretty important announcements from Mark Carney

today."

Among the five projects announced by Carney is a plan to double

production of liquefied natural gas at the Shell-led

LNG Canada plant in the western province of British Columbia, as

part of a campaign to diversify the economy and reduce reliance

on the United States.

"There is a large opportunity for job creation with those

initiatives ... but it also signals that Canada is open for

business, which should attract significant foreign investment,"

Chong said, adding that natural gas producers, major lenders, as

well as engineering and construction companies could be among

the sectors to benefit.

Shares of construction and infrastructure development

company Aecon Group Inc ( AEGXF ) jumped 9.6% and Bird

Construction Inc ( BIRDF ) shares ended 6.9% higher.

The industrials sector gained 1.6% and heavily weighted

financials were up 1%. Consumer discretionary rose 1.4%, with

shares of Magna International ( MGA ) adding 2%.

The auto parts supplier said it had appointed Philip D.

Fracassa as its new chief financial officer.