Investors pour $31.3 billion into Canadian securities in September, the strongest inflow in over a year
Canada saw a major resurgence in foreign demand for its securities in September, according to newly released data from Statistics Canada.
Overseas investors purchased $31.3 billion worth of Canadian securities during the month, marking the largest monthly inflow since April 2024 and following a net divestment in the previous month. During September, Canadians acquired $22.1 billion in foreign securities, up from the $14.9 billion they acquired in August.
This produced a net inflow of $9.2 billion to the Canadian economy.
The surge was driven heavily by demand for Canadian debt as foreign investors purchased $28.7 billion in debt securities, including $20.1 billion in bonds. Private corporate bonds denominated in US dollars and euros made up $19.2 billion of the buying. Provincial bonds attracted $2.9 billion, while federal government bonds saw a $3.2 billion divestment.
Money-market instruments also drew investor interest. Foreign investors added $8.5 billion in Canadian money-market holdings, led by federal government paper. Corporate money-market instruments saw net selling.
Equities saw renewed demand as well and after divesting $6.7 billion in August, global investors bought $2.7 billion in Canadian stocks in September. Purchases were concentrated in energy, mining, and manufacturing, while banking and trade-related sectors experienced outflows. Canadian equity prices climbed 5.1% from the end of August to the end of September.
Canadian investors were also active globally, posting their strongest month abroad since February. They bought $12.5 billion in foreign equities, including $10.5 billion in US shares and $2.0 billion in non-US markets.
Purchases of foreign debt instruments reached $9.7 billion, driven by US-issued bonds. Canadians reduced their holdings of US government debt by $1.8 billion. US equities rose 3.5% in September.
Across the third quarter, foreign inflows reached $80.3 billion, while Canadians bought $57.6 billion abroad, leaving a net gain of $22.7 billion for the quarter. Despite the strong Q3 performance, Canada still posted a net outflow of $61.9 billion for the year through September, a sharp swing from the $49.7 billion net inflow over the same period in 2024.
The next set of figures, covering October activity, is scheduled for release on December 17 and will give a clearer sense of whether September’s surge marks a turning point or a temporary swing.
