Canadians Bought C$25.36 Billion of Foreign Securities in February, Including Record Investment in Shares

By Robb M. Stewart

OTTAWA--Canadians made a record investment in foreign shares in February, including the highest monthly purchases of U.S. stocks in a year, as markets were roiled by geopolitical tensions and a spike in oil prices with start of the conflict in Iran.

The increased activity in foreign equities countered selling by Canadian investors in debt securities during the month, when at the same time foreign investors scaled back their buying of Canadian securities, data released Friday by the national statistics agency showed.

As a result, international transactions generated a net outflow from the Canadian economy of roughly 19.2 billion Canadian dollars, the equivalent of almost $14 billion, in February, Statistics Canada said. That rolled back a large chunk of the C$35.4 billion inflow in the first month of the year.

Overall, Canadian investors bought C$25.36 billion in foreign securities in the latest month, the largest investment since March 2024.

The investment included an all-time high C$32.86 billion worth of foreign shares, of which U.S. equities accounted for about C$29.2 billion. The agency said shares of U.S. large-capitalization technology companies continued to attract the bulk of Canadian investment.

U.S. share prices faltered in February, with the Standard & Poor's 500 composite index declining 0.9%.

Canadian investors reduced their holdings of foreign debt securities during the month by C$7.5 billion, led by a record C$12.6 billion divestment of U.S. federal government bonds.

Nonresident investors purchased a net C$6.17 billion of Canadian securities during February, down sharply from the C$46.79 billion acquired the month before, Statistics Canada said.

Foreign investors continued to add Canadian bonds to their portfolios, buying C$22.63 billion of debt during the month after adding C$51.27 billion in January. However, nonresident investors divested C$9.17 billion of Canadian equity securities in February, with widespread selling led by energy and mining stocks, moderated by a record C$12.1 billion foreign investment in Canada's chartered banks.

The Toronto Stock Exchange's S&P TSX composite index rose 7.6% 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 [e-mail]

(END) Dow Jones Newswires

04-17-26 0927ET