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TSX ends down 0.2% at 26,506.00

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Materials sector declines 0.7%

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Algoma Steel ( ASTL ) gains 4.5% amid tariff-measure plans

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Empire Company ( EMLAF ) jumps 5.3% after earnings beat

(Updates at market close)

By Fergal Smith

June 19 (Reuters) - Canada's main stock index edged

lower on Thursday, weighed down by declines in the materials and

consumer discretionary sectors, as Middle East tensions kept

risk appetite in check.

The S&P/TSX composite index ended down 53.85 points,

or 0.2%, at 26,506.00, extending its consolidation below the

record closing high it posted last Thursday at 26,615.75.

Volumes were lower than usual with U.S. markets closed for

the Juneteenth National Independence Day holiday.

Geopolitics could be raising volatility but the longer-term

trend higher appears intact, said Sid Mokhtari, chief market

technician for CIBC Capital Markets, adding "we are finding this

to be a resting phase for the market before it can resume its

uptrend forces."

A week-old conflict between Israel and Iran escalated with no

sign of an exit strategy from either side.

"We are seeing energy for obvious reasons rebuilding its

(positive) technical backdrop," Mokhtari said.

The price of oil rose 0.9% to $75.80 a barrel as the

conflict threatened crude supplies.

The energy sector was up 0.7%, but materials, which include

fertilizer companies and metal mining shares, lost 0.7%.

Consumer discretionary fell 0.4% and technology ended 0.3%

lower.

Shares of Algoma Steel Group ( ASTL ) rose 4.5% as Prime

Minister Mark Carney told reporters Canada will soon adopt

tariff measures to address risks associated with persistent

global overcapacity and unfair trade in steel and aluminum.

Food retailer Empire Company Ltd ( EMLAF ) was another

standout. Its shares jumped 5.3% after the company beat

quarterly profit estimates.