• TSX down 0.2% at 21,587.880
• Posts lowest closing level since March 5
• Materials sector declines 0.5%
• Primo Water shares gain after merger deal

June 17 (Reuters) - Canada's main stock index fell to a three-month low on Monday as its heavy weighting in resource shares and low exposure to technology proved unattractive to investors even as Wall Street extended its record-setting run.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) New Tab, opens new tab ended down 51.22 points, or 0.2%, at 21,587.88, its lowest closing level since March 5.

In contrast, U.S. benchmark the S&P 500 notched an all-time closing high, helped by its heavy weighting in high-flying technology shares.

"The TSX, it's just missing the ingredients," said Barry Schwartz, a portfolio manager at Baskin Financial Services. "We just don't have the right businesses for this type of economy."

Tech shares account for just 11% of the TSX's market capitalization, while financial and resource shares combined have a roughly 60% weighting.

The materials group (.GSPTTMT) New Tab, opens new tab, which includes metal miners and fertilizer companies, fell 0.5%, as gold and copper prices fell, while energy (.SPTTEN) New Tab, opens new tab ended 0.1% lower.

The high-dividend paying utilities group (.GSPTTUT) New Tab, opens new tab lost 0.9% as bond yields clawed back some recent declines.

One bright spot was the industrials sector (.GSPTTIN) New Tab, opens new tab, It added 0.6%, while consumer staples (.GSPTTCS) New Tab, opens new tab ended 0.4% higher.

The consumer-related sector was helped by a gain of 2% for the shares of Primo Water Corp after the packaged water company entered into a merger agreement with BlueTrition Brands.

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https://www.reuters.com/markets/tsx-futures-slip-receding-commodity-prices-2024-06-17/