Foreign investors still have a very large appetite for Canadian securities, according to newly released monthly data from Statics Canada.
Foreign investors purchased a net $14.7-billion worth in securities for the month of May.
Over the last five months, foreign acquisitions of Canadian securities have totalled $74.6, an $8.4-billion increase over last year.Foreigners bought $17.3 billion in Canadian bonds, the largest monthly investment since March 2015. Most bond transactions were centred primarily on the secondary markets.
Investors also cashed out on the uptick: foreign investment in Canadian equities slowed to $819 million in May, from $2 billion in April, following large gains in February and March. According to Statistics Canada, Canadian stock purchases were moderated by divestment caused by cross border mergers and acquisitions, as portfolio investors gave shares to direct investors.
