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TSX ends down 0.5% at 22,726.76

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Posts second straight day of declines

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Materials sector falls 2%; copper hits 3-month low

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Tech and consumer discretionary lose ground

(Updates at market close)

By Fergal Smith

July 18 (Reuters) - Canada's main stock index extended

its pullback from a record high on Thursday, pressured by

declines for technology and metal mining shares, as investors

took stock of recent gains for the market.

The S&P/TSX composite index ended down 124.41

points, or 0.5%, at 22,726.76, its second straight day of losses

after it posted an all-time high on Tuesday.

"I don't think there is any specific catalyst," said Barry

Schwartz, chief investment officer at Baskin Wealth Management.

"We've had a hell of a run up and this is just the pause that

refreshes."

U.S. stocks were also lower as investors continued to

rotate away from high-priced megacap growth stocks and

second-quarter earnings season gathered steam.

"The elements are still in place for multi-year strong

returns on markets. Inflation has been tamed, interest rates I'm

certain are going to be cut globally in the next few months or

so ... it's just we got pretty spicy in terms of valuations for

a lot of companies," Schwartz said.

Data on Tuesday showed that Canada's annual inflation rate

slowed to 2.7% in June from 2.9% in May, leading to increased

bets the Bank of Canada would cut interest rates for a second

time at a policy decision next week.

The materials group, which includes metal miners and

fertilizer companies, lost 2% as the prices of gold and

copper fell, with the latter tumbling to a three-month

low. Technology was down 1.1% and consumer discretionary ended

1.4% lower.

Not all stocks lost ground. Shares of Tenaz Energy Corp ( ATUUF )

jumped 56.4% after the company agreed to acquire all

shares of NAM Offshore B.V., which operates the Groningen gas

field in the Netherlands.