(Updates with morning prices)

By Ragini Mathur

June 13 (Reuters) -

Canada's main stock index declined on Friday, dragged down

by losses in technology shares, as Israel's widescale strikes on

Iran dampened global risk appetite.

The S&P/TSX composite index was down 0.5% at

26,490.64 points.

Israel has warned that the strikes were the start of a

prolonged operation to prevent Tehran from building an atomic

weapon. Iran has promised a harsh response.

However, U.S. President Donald Trump

urged Iran to make a deal

over its nuclear programme, saying there was still time for

the country to prevent further conflict with Israel.

The downturn in the TSX was limited as investors shifted to

safe-haven assets, boosting metal mining shares. The materials

sector gained 0.6%

The energy sector rose 1.7% to be the top

gainer as the tensions in the Middle East sparked worries about

supply disruptions, boosting crude prices.

"I don't think it's any surprise that Toronto Stock

Exchange is going to hold up greater than New York, which is

more based on technology or multinational corporations," said

Allan Small, senior investment advisor at Allan Small Financial

Group with iA Private Wealth.

"Gold and oil make up a big chunk of our market and

anything commodities-based is relatively going to do well".

The technology sector fell 1.5%, while the

heavyweight financial stocks were down nearly 1%.

The benchmark index achieved a second consecutive record

high on Thursday and appears poised to secure its third straight

weekly gain, provided losses remain contained.