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Foreign Captial Flows
These indicators measure flows of foreign capital across borders. The reports measure the monthly value of purchases by foreigners of domestic securities, debt, and assets. Long-term securities are looked at more closely than short term flows for underlying fundamentals, while short term flows can show reaction to market crises.

Main Indicator: International Securities Transactions

Most Recent Release

July
17th, 2008
Actual Forecast Previous Revised Form
10.7B 3.5B 9.8B N/A

For May
Provided by: Statistics Canada
Official Release: News Release

From the Release: "Foreign demand for Canadian securities remained strong in May as investment in new Canadian bonds accelerated. This activity was mainly comprised of long-term debt instruments issued by the provincial and private corporate sectors.

At the same time, Canadian investors continued to diversify their investment by adding a sizable amount of foreign securities to their portfolios, favouring equities over long-term debt instruments. May also saw the second monthly investment in foreign short-term debt since August 2007.

Non-residents purchased $7.7 billion worth of Canadian bonds in May, the largest monthly acquisition in over a year. The focus remained on new issues denominated in foreign currencies by Canadian private corporations and provinces, with $6.8 billion (net of retirements) of these bonds picked up."

 

Table of Past Data

10/1811/1912/171/172/203/204/215/206/177/17
Actual-3.8B-5.2B-24.3B-4.8B1.24B0.9B3.8B5.3B9.0B10.7B
Forecast2.3B1.2B-1.0B1.5B1.50B1.9B1.5B2.3B4.0B3.5B
Previous-0.8B-3.8B-5.2B-24.3B-4.84B1.2B0.94B3.8B5.3B9.8B
Revised From1.5BN/AN/AN/AN/AN/A0.92BN/AN/AN/A

Past Releases

June
17th, 2008
Actual Forecast Previous Revised Form
9.0B 4.0B 5.3B N/A

For April
Provided by: Statistics Canada
Official Release: News Release 

From the Release: "Non-residents' demand for Canadian securities continued to heat up, as substantial acquisitions of Canadian debt instruments in April drove foreign investment to its highest level since November 2006. Foreign investment in both short- and long-term debt instruments rebounded, while equity investment continued at a strong pace.

Canadian investors added sizeable amounts of foreign instruments to their portfolios in April. Equities dominated the investment flows, as global stock markets strengthened. Investment in bonds bounced back while Canadians continued to avoid foreign money market instruments, especially US paper."

May
20th, 2008
Actual Forecast Previous Revised Form
5.3B 2.3B 3.8B N/A

For March
Provided by: Statistics Canada
March's Release: News Release

The amount of Canadian securities purchased by foreigners increased C$5.3billion in March. Purchases of new Canadian equity were focused in the banking sectors, and offset sales of outstanding shares. Sales of outstanding corporate shares reversed 3 months of acquisitions and were concentrated in non-bank financial, energy and mining firms. Canadian stocks lost 1.7% in March after a 3.3% gain in February.

The Canadian Dollar fell below 0.99 overnight and again following today's news from Canada. Wholesale sales came in better than expected today as well. However as the NY-morning trading session continued the greenback pared some of those earlier losses.  

From the Release:

"Foreign interest in Canadian securities continued to grow in March. Foreign acquisitions of Canadian securities reached $5.3 billion in March, the highest level since March 2007, fueled by substantial issuance of new Canadian shares to foreign portfolio investors. At the same time, Canadian investors divested some foreign securities, all in debt instruments. March saw a $3.3 billion decline in Canadian holdings of foreign securities, on the heels of three straight months of investments.

April
21st, 2008
Actual Forecast Previous Revised Form
3.8B 1.5B 0.94B 0.92B
For February
Provided by: Statistics Canada
Official Release: News Release

Foreigners purchases C$3.8 billion worth of Canadian securities in February, better than expected. In addition to the report which reported strong demand for Canadian bonds and stocks, though holdings of money market instruments was down. The Canadian Dollar benefited today from oil hitting a fresh record of $117 per barrel.

From the Release:

"Canadians sharply increased their holdings of foreign securities by $6.1 billion in February. This reflected a rebound in the demand for both foreign stocks and bonds. Meanwhile, non-residents acquired $3.8 billion worth of Canadian securities over the month, their largest monthly purchase since April 2007. Canadian dollar-denominated outstanding bonds accounted again for the majority of the foreign investment."

March
20th, 2008
Actual Forecast Previous Revised Form
0.9B 1.9B 1.2B N/A
For December
Provided by: Statistics Canada
February
20th, 2008
Actual Forecast Previous Revised Form
1.24B 1.50B -4.84B N/A

For December
Provided by: Statistics Canada

"Non-residents invested $1.2 billion in Canadian securities in December, largely equities. Over the year, foreign portfolio investors sold $33.8 billion worth of Canadian securities, largely reflecting high foreign-takeover activity and the subsequent relinquishing of Canadian portfolio shares to foreign direct investors.

For their part, Canadian investors acquired $1.9 billion worth of foreign securities in December, adding equities and further reducing debt instruments. The meltdown in the sub-prime mortgage sector and the resulting credit crunch have contributed to major divestments of foreign debt instruments. Since August 2007, Canadians have removed $20.0 billion worth of foreign debt instruments from their portfolios, which largely offset a $35.3 billion investment from January to July 2007."

January
17th, 2008
Actual Forecast Previous Revised Form
-4.8B 1.5B -24.3B N/A
For November.
Official Release from Statistics Canada
"Non-residents made significant adjustments to their portfolios in November, reducing their holdings of Canadian equities substantially in exchange for federal government bonds, in total removing $4.8 billion worth of Canadian securities. Meanwhile, Canadians disposed of $4.5 billion of foreign securities in November, all in foreign bonds."
December
17th, 2007
Actual Forecast Previous Revised Form
-24.3B -1.0B -5.2B N/A
For October
Release from Statistics Canada

Driven by strong foreign take over activities resulting in withdrawal of Canadian portfolio shares, Canadian securities hit a record C$24.3 billion divestment in October. The divestment came on the heels of record highs for the Canadian currency, as investors looked abroad and bought $4.8 billion of foreign securities.
November
19th, 2007
Actual Forecast Previous Revised Form
-5.2B 1.2B -3.8B N/A
For September.
October
18th, 2007
Actual Forecast Previous Revised Form
-3.8B 2.3B -0.8B 1.5B
For August.

Non-residents disposed of C$3.8 billion worth of Canadian securities in August, reports Statistics Canada. This divestment was mainly focused on Canadian shares and corporate paper. "As a global investment trend, non-residents withdrew from instruments with higher credit risks and liquidity risks." Canadians, meanwhile, disposed of a record C$7.4 billion worth of foreign securities, liquidating a sizable share of their holdings of foreign money market instruments. The sell off was brought about by August's credit crunch, and residents put the breaks on their investment in foreign corporate paper, "which is a reversal from a period of heavy acquisitions of foreign securities which has averaged C$6.3 billion per month since February 2005." Canadians did continue buying foreign stock, and added C$889 million worth of US government treasury bills.

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