15.05.202612:36:54UTC+00Foreign Investment in Canadian Securities Slows Sharply

Foreign investors purchased C$4.6 billion in Canadian securities in March 2026, marking the weakest monthly inflow so far this year and falling well short of the C$11.4 billion expected by analysts. Non-resident investors cut their holdings of Canadian equities by C$3.8 billion, following a C$9.1 billion reduction in February. The March decline was driven primarily by the retirement of Canadian shares linked to cross-border merger and acquisition transactions.

By sector, the heaviest selling was in banking stocks (-C$7.5 billion) and in energy and mining companies (-C$6.0 billion), with these outflows partially offset by increased investment in manufacturing shares. On the fixed-income side, foreign investors added C$8.5 billion in Canadian debt securities, with the bulk of the inflows directed toward euro-denominated provincial government bonds. In contrast, non-residents scaled back their positions in corporate bonds by C$1.7 billion and in federal government bonds by C$1.2 billion.