Meanwhile, Canadian investors reduced their exposure to foreign securities according to Statistics Canada data
After divesting more than $22 billion of Canadian securities in September, foreign investors’ sentiment swung back in favour to the tune of $8.5 billion a month later.
Canadian investors reduced their holdings of foreign securities by $1.7 billion, after buying more than $10 billion worth in the previous month.
The latest figures from Statistics Canada show that international transactions in securities generated a net inflow of funds of $10.1 billion in the Canadian economy in October, for a total of $123.8 billion in 2022.
Non-resident investors’ cash was focused on Canadian corporate debt with a total $14.4 billion acquired, while retirement of provincial government bonds offset some of this gain ($5.3 billion).
The divestment of Canadian equities continued, but at a slower pace than in the previous month with just $253 million sold in October compared to a $9 billion pull-back in September.
Canadians dump US shares
Canadians reduced their international securities holdings with US equities the largest casualty.
They divested $1.7 billion of foreign securities in October, following investment of $10.4 billion in September, with a reduction of $13 billion in equities including $11.4 billion in US shares.
However, foreign bonds were still in favour for Canadian investors who acquired $10.7 billion in October, following a $12.9 billion investment in September.
As US long-term interest rates overtook the Canadian equivalent, Canadian investors bought a record $9.3 billion of US government bonds plus $3.5 billion of non-US foreign bonds.
