(Recasts with market close)

* TSX ends down 0.03% at 33,904.11

* Energy falls 1.4% as oil settles 1.5% lower

* Retail sales rise 0.7% in February

* Canada approves Enbridge's ( ENB ) gas pipeline expansion

By Purvi Agarwal and Fergal Smith

TORONTO, April 24 (Reuters) - Canada's main stock index

inched lower on Friday as investors weighed prospects for a

resumption of U.S.-Iran peace negotiations, with declines for

energy offsetting gains for financial and technology shares.

The Toronto Stock Exchange's S&P/TSX composite index

ended down 8.82 points, or 0.03%, at 33,904.11. For

the week, the index was down 1.3%, after four straight weekly

gains.

Iran's foreign minister, Abbas Araqchi, was expected in the

Pakistani capital Islamabad on Friday to discuss proposals for

restarting peace talks with the United States, but Pakistani

sources said he was not due to meet U.S. negotiators there.

"US-Iran peace talks may resume soon, which could remain an

important macro catalyst for energy, commodities, and broader

risk sentiment," Colin Cieszynski, chief market strategist at

SIA Wealth Management, said in a note.

The recent jump in oil prices due to the closure of the

Strait of Hormuz has boosted inflation pressures globally.

Still, economists in a Reuters poll expect the Bank of Canada to

leave its benchmark interest rate on hold next Wednesday and

through the rest of the year.

Domestic data showed that retail sales rose 0.7% in February

from January, slightly below estimates of a 0.9% gain.

The energy sector fell 1.4% as the price of oil

settled 1.5% lower at $94.40 a barrel.

Canada has approved a C$4 billion ($2.93 billion) expansion of

Enbridge's ( ENB ) Westcoast natural gas pipeline system in

British Columbia, the first major pipeline project to get the

go-ahead under Prime Minister Mark Carney.

Shares of Enbridge ( ENB ) were up 1.3%.

Technology rose 0.3%, while utilities ended 0.4% higher as

bond yields eased. The Canadian 10-year yield was

down 2.2 basis points at 3.463%.

Healthcare stocks rose 3.9%, with shares of

Curaleaf Holdings Inc ( CURLF ) up 13%.