(Updates throughout at market close)

By Fergal Smith

TORONTO, Aug 13 (Reuters) - Canada's main stock index rose

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

investors weighed softer-than-expected U.S. inflation data and

recent signs of improvement in the domestic economy.

The S&P/TSX Composite Index ended up 97.15 points,

or 0.3%, at 36,759.29, surpassing Wednesday's record closing

high. It was the fifth straight day of gains for the index,

marking the longest daily winning streak since April.

* "It's undeniable that Canada has lots of potential and

upside," said Victor Kuntzevitsky, a portfolio manager at

Stonehaven, Wellington-Altus Private Counsel. "So, generally we

are very excited about Canadian equity allocations and the

economy as a whole."

* Recent strong jobs data has added to evidence of a rebound

in Canada's economy after it was held back by trade uncertainty

at the start of the year.

* A Canadian government source directly familiar with trade

negotiations with the United States said talks were progressing

well and Washington also wanted an agreement before a new U.S.

tariff deadline on August 19.

* U.S. stocks also rose as tame producer price inflation

data supported expectations the Federal Reserve will not raise

interest rates at its September meeting.

* "What's been working really well for Canada are the things

that the world wants from us," Kuntzevitsky said. "That's

energy, that's metals, materials. Our financial industry has

been doing remarkably well and has a lot of potential to

implement the cost savings of AI."

* Heavily weighted financials added 0.5%, while

technology was up 3.1% and energy ended 0.8%

higher.

* The price of U.S. oil settled 2.4% lower at $81.25

a barrel, reversing course after a week of gains.

* Bird Construction ( BIRDF ) was a standout. Its shares rose

11.4% after the company's quarterly profit beat estimates.

* Just two of the 10 major sectors ended lower, including

materials, which includes metal mining shares. It was

down 2.2% as the price of gold pulled back from a

two-month high.

* Pan American Silver ( PAAS ) shed 9.8% after the miner

missed quarterly adjusted profit estimates on lower gold output.