CANADA STOCKS-Metal mining shares help lift TSX to another record high

By Fergal Smith

TORONTO, Nov 26 (Reuters) - Canada's main stock index climbed to another record high on Wednesday, led by metal mining shares, as declining global dependence on a small cluster of high-flying technology stocks raised investor confidence that equities could end the year on a strong note.

The S&P/TSX composite index .GSPTSE ended up 279.60 points, or 0.9%, at 31,180.25, eclipsing Tuesday's record closing high.

Wall Street also rose as revived tech strength and the growing probability of a December U.S. interest rate cut by the Federal Reserve put investors in a buying mood the day before the U.S. Thanksgiving holiday.

"You had a very challenging breadth environment, in the U.S. in particular, and that is reversing," said Sid Mokhtari, chief market technician for CIBC Capital Markets, adding that wider participation in the market's gains could benefit the TSX in particular.

The Toronto market has a heavy weighting in value, or inexpensive, stocks such as energy and financials.

"The reversal in breadth factors, which is a function of broad participation, globally speaking ... is definitely buoying the narrative for a year-end rally," Mokhtari said.

The TSX is expected to rise to another all-time high next year as trade uncertainty potentially eases and resource shares benefit from booming spending on artificial intelligence, a Reuters poll found.

The materials group .GSPTTMT, which includes metal mining shares, rose 3.7% as rising Fed rate cut bets boosted gold XAU= and copper HGc1 prices.

Canada will submit the proposed merger of Anglo American AAL.L and Teck Resources Ltd TECKb.TO to a national security review, Industry Minister Melanie Joly said. Teck's shares rose 0.4%.

Technology .SPTTTK added 0.5% and financials .SPTTFS ended 0.3% higher.

Consumer discretionary .GSPTTCD was the only one of 10 major sectors to end lower, losing 0.3%.