By Robb M. Stewart
OTTAWA--Canadian investment in foreign securities hit a record high in March with a focus on equities and investment fund shares, while foreigners increased their exposure to Canadian securities after selling down positions the month before.
Canadian investors in March bought an unprecedented 35.61 billion Canadian dollars, the equivalent of $26.15 billion, in foreign securities, Statistics Canada said Friday. It came after Canadians picked up C$24.16 billion in foreign securities the month before.
For the month, nonresident investors bought C$14.37 billion in Canadian securities, more than making up for C$4.28 billion in securities sold in February.
As a result, international transactions generated a net outflow of funds from the Canadian economy of roughly C$21.24 billion in March. That took the total outflow to C$27.94 billion in the first quarter.
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 Canadian investors acquired C$23.25 billion of foreign equities in March, the largest investment since December and led by the purchase of roughly C$18.9 billion in U.S. equities, mainly large capitalization technology shares.
Foreign investors in March resumed buying Canadian debt securities, picking up C$17.91 billion of the instruments, including both federal and provincial debt and private corporate bonds. Non-residents sold C$3.54 billion in Canadian equities for the month, mainly offloading shares in the banking sector and to a lesser extend trade and transportation stocks.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
05-17-24 0907ET
