Foreign securities purchases by Canadian investors hit seven-month high in June
Published: 11:34 17 Aug 2023 EDT
Canadian investors bought $14.4 billion worth of foreign securities in June, the largest investment in seven months, which equates to a net outflow of funds of $1.9 billion for the month, according to Statistics Canada.
The government agency also revealed that foreign investors increased their holdings of Canadian securities by $12.6 billion in June, following what it called “two months of strong investment,” ending the second quarter with a net inflow of funds of $21.8 billion into the Canadian economy.
Canadian investors increased their exposure to US government bonds by $8.9 billion in June, after two months of divestment, while foreign investors bought $8.4 billion of Canadian federal government paper during the month, following a record $11.8 billion investment in May.
Statistics Canada added that overall, Canadian investors increased their holdings of foreign securities by $14.6 billion in the second quarter, after reducing them by $23.4 billion in 1Q.
Notably, non-resident investors also divested Canadian shares by about $3.9 billion for a seventh consecutive month.
As well, investment in Canada's financial technology sector was reduced to less than half in the first six months of 2023 when compared to last year, according to a report from KPMG, citing high interest rates and concerns of a pending economic slowdown.
The accounting firm also noted that from January to June 2023, investments, including venture capital, private equity and merger and acquisition activity, totalled $353.7 million across 57 transactions.
Contact Sean at sean@proactiveinvestors.com
