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TSX ends up 0.2% at 23,952.22
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Fourth day of record closing highs
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Materials group gains 1.8%; gold prices climb
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Energy adds 1%; oil settles 1.7% higher
(Updates at market close)
By Nikhil Sharma and Fergal Smith
Sept 24 (Reuters) - Canada's main stock index extended
its record-setting run on Tuesday, led by gains for energy and
metal mining shares, as major commodity importer China unveiled
stimulus measures to boost its economy.
The Toronto Stock Exchange's S&P/TSX composite index
ended up 57.51 points, or 0.2%, at 23,952.22, its
fourth straight day of record closing highs.
China's stimulus package, including interest rate cuts, was
broader than expected and marked the latest attempt by
policymakers to restore confidence in the world's second-largest
economy.
"When China is being stimulated, that definitely helps the
price of oil and many other commodities move higher," said Allan
Small, senior investment advisor of the Allan Small Financial
Group with iA Private Wealth.
Taken together with the Federal Reserve cutting interest
rates "you have all the makings of a good market in Canada,"
Small said.
Investors expect the Fed to continue cutting interest rates
over the coming months after the U.S. central bank reduced
borrowing costs for the first time in four years last Wednesday.
The Bank of Canada has also been easing policy. Given the
continued progress the BoC has made in bringing inflation back
down to the 2% target, it's reasonable to expect more rate cuts,
Governor Tiff Macklem said.
The materials group, which includes fertilizer companies and
mental mining shares, rose 1.8% as gold and copper
prices climbed. It was led by a gain of 9% for Aya Gold & Silver
Inc. ( AYASF )
The price of oil also rose, settling 1.7% higher at $71.56 a
barrel, on China's stimulus measures and concerns that growing
conflict in the Middle East could hit regional supply.
The energy sector was up 1% and industrials added 0.3%.
Heavily weighted financials were a drag, ending 0.2% lower.