(Updated at 10:11 a.m. ET/ 1411 GMT)

By Nikhil Sharma

Sept 16 (Reuters) - Canada's main stock index edged up

to an all-time high on Monday, driven by gains in healthcare

shares, while investors bet on a heftier U.S. interest-rate cut

later this week.

The Toronto Stock Exchange's S&P/TSX composite index

was up 54.98 points, or 0.23%, at 23,623.63. It had

notched record-high closing levels in the past two sessions.

At least nine sectors gained, led by a near 1% rise in

healthcare. Bausch Health Companies ( BHC ) jumped

6.7% after reports of unit Bausch + Lomb exploring sale

options.

The domestic index pared initial gains, however, taking cues

from Wall Street after the tech-heavy Nasdaq registered

an over 1% decline.

Odds of a 50-basis-point rate cut at the end of the U.S.

Federal Reserve's two-day meeting on Wednesday have risen to

63%, from 30% last week, according to the CME's FedWatch tool.

"It's probably the first cut of many to come" and that

gives a boost to the resource-heavy Canadian market for a number

of reasons, said Allan Small, senior investment advisor at Allan

Small Financial Group with iA Private Wealth.

Zero-yield gold and other dollar-denominated commodities

tend to benefit from lower U.S. interest rates. Crude oil and

gold are among Canada's top exports.

The Bank of Canada has already cut its interest rates three

consecutive times this year, bringing the policy rates down from

a two-decade high of 5% to 4.25%.

On the data front, Canadian factory sales grew by 1.4% in

June from May on higher sales of petroleum and coal products, as

well as chemical products.

The TSX's financials sector climbed 0.4%, while

energy stocks rose 0.35%.

West Texas Intermediate crude futures rose 2.51%

and Brent crude gained 1.98%.

The TSX has added 12.7% for the year.