(Updates with market close data, changes headline)

By Ragini Mathur and Divya Rajagopal

June 16 (Reuters) - Canada's main stock index closed up

on Monday, led by information technology stocks, with investors

shaking off concerns around escalating Middle East tensions and

instead focusing on the Group of Seven summit.

The S&P/TSX composite index closed up 0.24% at

26,568.61. The commodity-heavy benchmark index fell 0.4% on

Friday after a record-setting run last week, buoyed by rising

commodity prices, lower-than-expected U.S. inflation data and

optimism around the U.S.-China trade deal.

Shortly after the open, the exchange touched an all-time

high of

26,670.69 points

.

On TSX, the information and technology sector was

the top performer, closing up 1.36%, as the shares rebounded

from Friday's sharp losses.

Consumer discretionary closed up 0.3% and the

heavy-weight financials also gained ground, closing up

0.72%.

On the downside, the energy sector fell the most,

closing down 0.5%, tracking oil prices.

Metal mining shares also fell 0.04% as gold prices

also slipped after hitting nearly an eight-week high.

Among top gainers, uranium miner Denison Mines Corp ( DNN )

gained 12%, Ivanhoe Mines ( IVPAF ) 8.6% and Algoma Steel ( ASTL )

6.89%, which made these stocks the three top

performers of Monday's trade.

Market optimism following a G7 draft statement on stability

diminished after President

Donald Trump said it was a mistake to remove Russia from the

group over a decade ago.

The discussions are also expected to center on advancing

trade deals, with investors closely watching prospects of Canada

moving closer to a trade agreement with the U.S.

Meanwhile, geopolitical tensions continued to dominate headlines

as the conflict between Israel and Iran showed no signs of

cooling, but oil prices edged lower after a 7% surge on Friday.

"Investors are starting to price in that the conflict in the

Middle East will be contained," said Ian Chong, portfolio

manager at First Avenue Investment Counsel.

This week's Fed monetary policy decision presents the next

major challenge for markets. While the U.S. central bank is

widely expected to keep interest rates unchanged on Wednesday,

investors will watch for hints about potential rate cuts in the

coming months.

"(The) Fed will probably be on hold, especially with the Middle

Eastern tension potentially driving oil prices higher, which is

inflationary and I don't think the rhetoric will necessarily

change coming out of the Fed," Chong added.