December sees surge in foreign securities purchases while Canadian shares are offloaded

  • Canadian investors bought a record amount of foreign securities in December
  • International transactions in securities generated a net outflow of C$18.96 billion from the Canadian economy
  • Canadian investment in foreign securities hit an all-time high of C$29.4 billion
  • Investment in U.S. equities was the largest in three years, at C$23.2 billion in December
  • Nonresident investors purchased a net C$10.44 billion in Canadian securities
  • Foreign investors added C$10.97 billion of Canadian debt securities to their portfolios in December
  • Nonresident investment in Canadian equities was trimmed by C$532 million
  • For 2023, foreign investors added C$32.42 billion of Canadian securities
  • Non-resident investment in Canadian bonds remained strong, with investors adding C$79.66 billion worth to their holdings
  • Canadian investors increased their exposure to foreign securities by C$53.04 billion

Canadian investors made history in December by purchasing a record amount of foreign securities, reaching a total of C$29.4 billion. This surge was driven by a significant increase in share buying, with C$29.47 billion worth of shares acquired. Meanwhile, foreigners reduced their holdings of Canadian shares but added debt securities. As a result, international transactions in securities resulted in a net outflow of C$18.96 billion from the Canadian economy. Investment in U.S. equities reached its highest level in three years, with C$23.2 billion invested in December, primarily focused on large-cap technology stocks and investment fund shares tracking broad U.S. market indexes. Nonresident investors also continued to show interest in Canadian securities, purchasing a net C$10.44 billion. Foreign investors added C$10.97 billion of Canadian debt securities to their portfolios, mainly in the form of new instruments denominated in U.S. dollars and issued by Canadian chartered banks. However, nonresident investment in Canadian equities decreased by C$532 million. Looking at the overall picture for 2023, foreign investors added C$32.42 billion of Canadian securities, a significant decrease from the previous year. Non-resident investment in Canadian bonds remained strong, with investors adding C$79.66 billion worth to their holdings, while investment in Canadian shares decreased by C$48.7 billion. On the other hand, Canadian investors increased their exposure to foreign securities by C$53.04 billion, with a focus on foreign shares and bonds.

Factuality Level: 7
Factuality Justification: The article provides data and statistics from Statistics Canada regarding Canadian investors’ purchases of foreign securities and foreigners’ purchases of Canadian securities. The information is presented without any obvious bias or opinion. However, the article lacks context and analysis, and it does not provide a clear explanation of the implications or significance of the data. Additionally, the article contains some repetitive information and could benefit from more concise reporting.
Noise Level: 6
Noise Justification: The article provides information on the record amount of foreign securities bought by Canadian investors in December, as well as the net outflow of funds from the Canadian economy. It also mentions the focus on large-capitalization technology stocks and investment fund shares in the U.S. market. However, the article lacks in-depth analysis and does not provide insights into the implications of these transactions or the reasons behind the trends. It also does not provide evidence or data to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information on Canadian investors buying a record amount of foreign securities, particularly shares, and foreigners offloading Canadian shares but adding debt securities. This could impact the international transactions in securities and the Canadian economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses financial transactions and investments, but there is no mention of any extreme events or their impact.
Private Companies: Canadian chartered banks
Key People: Robb M. Stewart (Author)

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