Foreigners in May Add C$20.79 Billion in Canadian Securities to Portfolios

OTTAWA--Foreign investors in May roughly doubled their investment in Canadian securities relative to the previous month, helping generate the first net inflow of funds into the country in six months.

Nonresident investors purchased a net 20.79 billion Canadian dollars, or the equivalent of $16.51 billion, in Canadian securities in May, Statistics Canada reported Friday. In the previous month, foreigners added C$9.9 billion in Canadian securities.

Foreign-investor purchases were the most in a year, with acquisitions in May targeting government and corporate bonds.

Meanwhile, Canadian purchases of foreign securities slowed in May to C$10.65 billion, after adding over C$18 billion in the previous month. May's purchases by Canadian investors were focused on shares of large-cap technology companies.

As a result, international transactions generated a net inflow of funds into the Canadian economy of C$10.14 billion in May. In the previous five months, Canadian acquisitions of foreign securities exceeded foreign purchases of Canadian securities.

The monthly international securities report covers portfolio transactions in equity and investment fund shares, bonds and money market instruments for both Canadian and foreign issues. This activity excludes transactions in equity and debt instruments between affiliated enterprises.

Write to Paul Vieira at

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