By Robb M. Stewart
OTTAWA--Foreigners trimmed their holdings of Canadian securities in February following three months of investment, even as an all-time high investment in bonds by Canadians drove an increase in their investment in foreign securities.
Nonresident investors in February sold a net 8.78 billion Canadian dollars, the equivalent of $6.35 billion, in Canadian securities, Statistics Canada said Wednesday.
The selldown was driven by a record divestment of Canadian short-term debt securities, that was partially moderated by a sizable investment in corporate bonds over the month, the data agency said. Foreign investors cut holdings of Canadian government paper by C$15.01 billion, including C$11.81 billion in federal government debt, and follows on the heels of a record divestment of C$15.55 billion in Canadian private corporate debt paper the month before.
The same month, Canadian investment in foreign securities rebounded, with C$24.19 billion added to portfolios following a C$7.61 billion divestment of foreign securities in January.
The agency said Canadian investors picked up a record C$16.26 billion in foreign bonds in February, including roughly C$9.1 billion of U.S. government bonds. Canadian investment in U.S. equities reached C$9.1 billion for the month, largely focused on large capitalization technology shares, to offset a C$7.7 billion divestment in January.
As a result, international transactions generated a net outflow from the Canadian economy of roughly C$32.97 billion in February.
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.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
04-17-24 0910ET
