(Restores dropped word "high" in second bullet)

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TSX ends up 0.4% at 23,121.73

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Eclipses Monday's record closing high

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Tech sector leads gains, rising 1.2%

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Materials group adds 0.7%

By Fergal Smith

Aug 21 (Reuters) - Canada's main stock index rose to a

record high on Wednesday, led by technology shares, as investors

cheered prospects of lower borrowing costs globally and despite

a looming work stoppage at Canada's two main railroad companies.

The S&P/TSX composite index ended up 84.29 points,

or 0.4%, at 23,121.73, eclipsing the record closing high it set

on Monday.

"We are in a rising-tide market," said Barry Schwartz, chief

investment officer at Baskin Wealth Management. "There are some

good vibes out there from the fact that interest rates are going

to be cut globally and the economy is still so far so good."

Federal Reserve officials last month were strongly leaning

toward a rate cut at their September policy meeting and several

of them would have even been willing to reduce borrowing costs

immediately, according to the minutes of the July 30-31

gathering.

Eight of 10 major sectors on the TSX notched gains, led by

technology, which advanced 1.2%. The materials group, which

includes fertilizer companies and metal miners added 0.7% as

copper prices climbed.

Canadian Pacific Kansas City Ltd ( CP ) and Canadian

National Railway Co ( CNI ) are set to lock out around 10,000

of their Canadian unionized workers on Thursday at 12:01 a.m. ET

(0401 GMT), starting an unprecedented simultaneous work stoppage

that would grind almost all railway freight movement in the

country to a halt.

Shares of both companies ended higher.

"It's going to affect their earnings in Q3, unfortunately,

but I don't think anybody expects it (the strike) would go very

long," Schwartz said.

Energy was one of the sectors that ended lower, dipping

0.1%, as the price of oil settled 1.7% lower at $71.93 a

barrel, extending its recent decline.