Foreigners Bought C$41.16 Billion of Canadian Securities in April, the Most in Two Years

By Robb M. Stewart

OTTAWA--Canadian investors pulled back sharply on purchases of foreign securities in April even as foreigners notched the largest investment in Canadian securities in two years.

Nonresident investors purchased a net 41.16 billion Canadian dollars, the equivalent of US$29.96 billion, in Canadian securities for the month, Statistics Canada said Monday. That was the biggest investment since March 2022, led mainly by purchases of debt securities.

For the month, Canadian investors bought just C$2.5 million in foreign securities, a big drop from the record C$35.61 billion in March.

As a result, international transactions generated a net inflow into the Canadian economy of roughly C$41.16 billion in April.

The monthly international securities report covers a portfolio of transactions in equity and investment fund shares, bonds and money market instruments for both Canadian and foreign issues. The activity excludes transactions in equity and debt instruments between affiliated enterprises.

The data agency said foreign acquisitions of Canadian debt securities reached C$34.55 billion in April, the most investment since April 2020 at the onset of the Covid-19 pandemic. Buying was focused largely on federal government bonds and money market instruments, though non-resident investors also added to both private corporate and provincial government bonds.

Foreign investment in Canadian shares amounted to $6.61 billion in April, recouping divestments totaling roughly C$6.2 billion the previous two months.

Canadians bought C$11.57 billion foreign debt securities in April, down from C$12.37 billion the month before, and reduced their exposure to foreign equity markets by C$11.57 billion for the month, including selling about C$9.7 billion worth of U.S. shares in April after buying C$18.9 billion the previous month.

Write to Robb M. Stewart at [e-mail]

(END) Dow Jones Newswires

06-17-24 0909ET