$10.6B in securities flowed out of Canada in June

Canadian investors padded their foreign securities holdings in June, whereas foreign investors dumped Canadian stocks and bonds.

Statistics Canada reports that foreign investors pulled $5.1 billion from Canadian bonds, and another $1.1 billion from domestic equities, during the month. This was somewhat offset by investors buying $2.3 billion in Canadian money market instruments.

Overall, foreign holdings of Canadian securities dropped by $4.0 billion in June, which represents the third divestment in four months.

At the same time, Canadian investors added $6.6 billion worth of foreign securities in June.

On balance, the Canadian economy recorded a net outflow of $10.6 billion due to cross-border securities flows. And, for the second quarter, net portfolio outflows totalled $17.0 billion.

For the first half of 2019, foreign investors bought $32.5 billion in Canadian securities, down from $49.4 billion for the same period in 2018.

Canadian investors added $8.4 billion in foreign securities through the first half, compared with $29.4 billion in 2018.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.