TORONTO, April 16 (Reuters) - Canada's main stock index edged lower on Thursday as investors weighed the potential economic cost of elevated oil prices, with declines for consumer-related shares offsetting gains for energy and real estate.
The Toronto Stock Exchange's S&P/TSX Composite Index ended down 103.76 points, or 0.3%, at 34,052.23.
On Wednesday, the TSX posted its highest closing level since March 2 on rising hopes of a resolution to the conflict in the Middle East that has disrupted energy supplies globally.
"We do think that the market is overly optimistic at looking through these issues," said Ben Jang, a portfolio manager at Nicola Wealth.
"The longer the uncertainty with oil - not only will prices continue to stay high but the prolonged conflict creates deeper scars within the marketplace which makes it more difficult for oil prices to come down quickly."
The price of oil settled 3.7% higher at $94.69 a barrel.
The consumer staples sector fell 1.4%, with shares of Loblaw Companies Ltd down 1.9% at their lowest closing level since January 7.
Industrials lost 0.8% and heavily weighted financials ended 0.5% lower.
Real estate investment trust Choice Properties and private-equity firm KingSett Capital will acquire First Capital REIT in a cash-and-stock deal worth about C$9.4 billion ($6.85 billion) including debt, the companies said.
"We think that this is a very positive sign for the commercial market place," Jang said. "We've had a really prolonged stretch where rate volatility and repricing of markets have led to compressed deal activity."
Shares of First Capital climbed 8%, which helped lift the real estate sector by 1.3%.
The energy sector tracked crude prices higher, adding 1%.
European buyers are exploring the possibility of purchasing liquefied natural gas from Canada's Pacific coast and shipping it through the Panama Canal as part of a long-term strategy to diversify supply, Reuters reported on Wednesday.
(Reporting by Fergal Smith in Toronto and Tharuniyaa Lakshmi in Bengaluru; Editing by Jonathan Ananda and Nick Zieminski)
By Fergal Smith
