Canadian investors set a new record in March, while foreign investments in Canadian securities surged
Canadian investors have acquired $35.6bn of foreign securities in March, marking a record investment of $51.5bn for the first quarter, according to Statistics Canada.
Meanwhile, foreign investors increased their holdings of Canadian securities by $14.4bn in March after selling off $4.3bn in February.
This activity resulted in a net outflow of $21.2bn from the Canadian economy in March, totalling $27.9bn for the first quarter.
In March, Canadian investment in foreign securities hit an all-time high of $35.6bn. The primary focus was on equities and investment fund shares, with a smaller emphasis on bonds.
Canadian investors acquired $23.2bn of foreign equities in March, the largest amount since December 2023. Most of this activity involved US equity securities, totalling $18.9bn, driven largely by large-cap technology shares.
By the end of March 2024, US share prices, measured by the S&P 500 composite index, had reached a record high.
Additionally, Canadian investors increased their holdings of foreign bonds in March, with $8.2bn invested in non-US foreign bonds, the highest since April 2022. This investment primarily targeted government bonds.
They also acquired $4.6bn of US bonds, including both corporate and government instruments.
Foreign investors increased their holdings of Canadian securities by $14.4bn in March, following a $4.3bn reduction in February. While they divested from equity securities, they resumed investing in Canadian debt securities.
In March, foreign investors acquired $17.9bn worth of Canadian debt securities. This included federal government bonds ($6.7bn), provincial bonds ($4.0bn), and private corporate bonds ($6.9bn), mainly issued by Canadian chartered banks in foreign currencies.
However, foreign investors sold $3.5bn of Canadian equity securities in March, primarily from the banking sector and, to a lesser extent, the trade and transportation industry.
Despite this, Canadian share prices, measured by the S&P/Toronto Stock Exchange composite index, continued to rise for the fifth consecutive month.
