Sept 11 (Reuters) - Canada's major stock index rose to another record high on Thursday as U.S. data supported bets on Federal Reserve interest rate cuts and after Canadian Prime Minister Mark Carney announced five major projects that would be eligible for fast-track approval.
The S&P/TSX composite index (.GSPTSE), ended up 228.50 points, or 0.8%, at 29,407.89, eclipsing Wednesday's record closing high.
U.S. consumer prices rose more than expected in August, but a surge in first-time applications for unemployment aid last week kept the Fed on track to cut interest rates next Wednesday.
"You are seeing strength in (U.S. stock market) sectors that are rate-sensitive, like financials, discretionary, materials," said Ian Chong, a portfolio manager at First Avenue Investment Counsel.
"Canada is piggybacking on a lot of that movement, but also we've had some pretty important announcements from Mark Carney today."
Among the five projects announced by Carney is a plan to double production of liquefied natural gas at the Shell-led (SHEL.L), LNG Canada plant in the western province of British Columbia, as part of a campaign to diversify the economy and reduce reliance on the United States.
"There is a large opportunity for job creation with those initiatives ... but it also signals that Canada is open for business, which should attract significant foreign investment," Chong said, adding that natural gas producers, major lenders, as well as engineering and construction companies could be among the sectors to benefit.
Shares of construction and infrastructure development company Aecon Group Inc (ARE.TO), jumped 9.6% and Bird Construction Inc (BDT.TO), shares ended 6.9% higher.
The industrials sector gained 1.6% and heavily weighted financials were up 1%. Consumer discretionary rose 1.4%, with shares of Magna International (MG.TO), adding 2%.
The auto parts supplier said it had appointed Philip D. Fracassa as its new chief financial officer.
Reporting by Fergal Smith in Toronto and Sanchayaita Roy in Bengaluru; Editing by Sahal Muhammed, Vijay Kishore, Rod Nickel
