* TSX ends down 0.2% at 35,263.85

* Posts weekly decline of 0.1%

* Technology ends 1.1% lower

* Consumer discretionary loses 0.9%

(Updates at market close)

By Sudeshna Ghoshal and Fergal Smith

TORONTO, July 17 (Reuters) - Canada's main stock index edged

lower on Friday as a selloff in U.S. semiconductor stocks and

other high-flying shares gathered pace and dented sentiment,

while gains in energy companies kept declines in check.

The S&P/TSX Composite Index ended down 76.30

points, or 0.2%, at 35,263.85, extending its pullback from a

record closing high on Wednesday. For the week, the index was

down 0.1%, after three straight weekly gains.

* Wall Street posted steeper declines as a pullback on

stocks associated with the AI boom, which has driven much of the

gains so far this year, morphed into a larger risk-off

sentiment.

* "The latest development is the competition from open

source models in China, which raised some competitive fears,"

said Angelo Kourkafas, senior global investment strategist at

Edward Jones Investments.

* Chinese AI startup Moonshot unveiled Kimi K3, a 2.8

trillion-parameter model that it said is the world's largest

open-weight AI system and delivers performance approaching U.S.

giant Anthropic's frontier Fable model.

* The TSX's technology sector fell 1.1%, with

shares of e-commerce company Shopify Inc ( SHOP ) down 1.4%.

* The materials group, which includes metal

mining shares, lost 0.5% as copper prices fell.

* Consumer discretionary was down 0.9% and

heavily weighted financials ended 0.5% lower.

* Three of the 10 major sectors ended higher, including

energy, which added 1.9%.

* U.S. crude oil futures settled 4.5% higher at

$82.49 a barrel after the U.S. and Iran stepped up attacks

across the Gulf.

* In domestic data, foreign investors bought a net C$7.90

billion ($5.63 billion) in Canadian securities in May following

an upwardly revised C$46.92 billion total purchase in April.