Canadian investors increased their holdings of international securities in August, the last month of data released by Statistics Canada.
Foreign securities held by Canadians increased by $12 billion in the month, which followed a $1.8 billion divestment in July. This rise was driven by an increase in acquisition of US corporate instruments.
Holdings of foreign bonds increased by $4.9 billion in August, the highest figure since February 2016 with US corporate and Treasury bonds a key part of the increase along with non-US foreign bonds.
Canadian investors also snapped up foreign equities totalling $7.2 billion, largely US stocks as prices edged higher. This increased investment followed a $2.9 billion divestment in foreign equities in July.
While Canadians were increasing their foreign securities holdings, international investors showed weakened interest in Canadian securities.
Foreign investors acquired $9.8 billion of Canadian securities in August, well below the $17.7 billion average in the previous 7 months.
Most of the activity in August was in the Canadian debt market with $8.2 billion of Canadian bonds acquired, mainly secondary market purchases of government Canadian dollar bonds.
Foreign investors’ acquisition of Canadian corporate bonds and equities slowed in the month.
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