*

TSX ends up 0.5% at 29,453.53

*

Eclipses Monday's record closing high

*

Technology sector gains 1.7%

*

Financials add 0.5%

(Updates at market close)

By Fergal Smith

Sept 18 (Reuters) - Canada's main stock index rose on

Thursday to another record high, led by technology shares, as

central bank interest rate cuts offset concern among some

investors that valuations are becoming stretched.

The S&P/TSX composite index ended up 131.87

points, or 0.5%, at 29,453.53, eclipsing Monday's record closing

high.

"We're dealing with markets that are fairly highly valued,"

said Michael Sprung, president at Sprung Investment Management.

"Given the high valuations and the investor exuberance that

seems to be apparent in the market, I think this is a time for

caution."

The TSX's 12-month forward price-earnings ratio, a closely

watched stock valuation metric, has climbed to 16.45, its

highest level since May 2021, data from LSEG Datastream showed.

Both the Bank of Canada and the Federal Reserve cut interest

rates by 25 basis points on Wednesday to support their

economies, marking their first actions in months.

"On the one side we see the slowing economy, but on the

other side there are still fears of inflationary pressures,"

Sprung said.

Investors expect just one more rate cut from the BoC by

year-end.

The technology sector rose 1.7%, with shares of

e-commerce company Shopify Inc ( SHOP ) up 3%.

Financials, which account for 33% of the index's weighting,

added 0.5%.

Four of the 10 major sectors ended lower, including energy.

Energy was down 0.2% as the price of oil settled 0.75%

lower at $63.57 a barrel.

The proposed Anglo American-Teck Resources merger has

revived long-standing ambitions to share infrastructure at two

major mines in northern Chile, but analysts say the plan could

face hurdles to gain buy-in from Swiss miner and trader

Glencore.

Shares of Teck ended 0.3% lower.