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TSX ends up 1.4% at 25,390.68

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Posts biggest gain since Aug. 8

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Eclipses last Thursday's record closing high

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Government proposes new spending measures

(Updates at market close)

By Fergal Smith

Nov 21 (Reuters) - Canada's main stock index jumped to a

record high on Thursday, with energy and financial shares

leading broad-based gains as commodity prices rose and the

government proposed measures that could stimulate the economy.

The S&P/TSX composite index ended up 354.22

points, or 1.4%, at 25,390.68, its biggest gain since Aug. 8. It

moved past the record closing high it posted last Thursday.

Wall Street also notched gains as investors digested chip

company Nvidia's ( NVDA ) earnings report.

"There was a lot of bearishness earlier in the year about

the prospects for the TSX but this record high ... it's a very

broad-based rally and that bodes to underlying strength," said

Elvis Picardo, a portfolio manager at Luft Financial, iA Private

Wealth.

All ten major sectors notched gains on Thursday as Canada's

Liberal government, which is trailing in the polls ahead of next

year's election, unveiled C$6.3 billion ($4.5 billion) in

proposed new spending measures to help consumers deal with high

prices.

"The Canadian economy has been slowing down and I think that

can boost consumer spending," Picardo said. "It would impact the

economy in a positive way and consequently the banks."

Financials, the most heavily weighed sector on the TSX, rose

1%, helped by a gain of 2.6% for Royal Bank of Canada ( RY ).

Manulife Financial ( MFC ) said it will reinsure C$5.4

billion ($3.86 billion) of its reserves as it looks to transfer

some risk from its portfolio and free up capital for stock

buybacks. Its shares rose 1.4%.

The technology sector climbed 2.2%, with shares of

electronics firm Celestica Inc ( CLS ) jumping 5.1%.

Energy advanced 1.8% as the price of oil settled 2.1%

higher at $70.19 a barrel. Industrials added 1.8% and the

materials group, which includes fertilizer companies and metal

mining shares, was up 1.3%.