Sign Up for FREE Daily Energy News
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • instagram
  • youtube2
WEC - Western Engineered Containment
Copper Tip Energy Services
Hazloc Heaters
Hazloc Heaters
WEC - Western Engineered Containment
Copper Tip Energy

Foreigners Flood Canada’s Stock Market Amid Value Rotation

English Français 简体中文
These translations are done via Google Translate

By Divya Balji

Foreign investors are piling back into Canada’s $3.2 trillion stock market after a pandemic-driven exodus.

The nation’s equities are on pace to record the highest foreign inflows since 2017, adding $22.7 billion as of the end of April, according to Bloomberg calculations based on Statistics Canada data. Overseas investors were net sellers in the past two years, partly because of a lack of large-cap technology stocks, the early winners of the Covid-19 pandemic.

The S&P/TSX Composite Index has rallied nearly 16% this year, outpacing the S&P 500 Index’s 12% rise, thanks to its large weighting in cyclical and value stocks. Financial firms, materials stocks and oil and gas companies — all beneficiaries of accelerating economic growth — make up 56% of the Canadian benchmark.

Foreigners on track to buy Canadian stocks at fastest pace since 2017

The TSX is traditionally a destination for investors looking for a higher risk-reward ratio, with energy and mining stocks making up about a quarter of the index. Rising commodity prices, a strong earnings outlook and an accelerating vaccine rollout have boosted investor confidence. The economy expanded at a 5.6% annualized rate in the first quarter, despite the headwind of coronavirus containment measures.

A rising Canadian dollar has also helped encourage capital flows from foreign investors. The loonie is the top-performing currency against the U.S. dollar among its G10 peers this year, rising more than 3%, partly because of higher prices for oil, lumber and other commodities the nation produces.

Share This:

More News Articles

New SHOWCASE Directory Companies


Delta Remediation Inc.
Axis Communciations
Muddy Boots
The Coverall Shop
Vista Projects Limited
Payload Technologies Inc.
Smart-Project Management Inc. / Trusted Pipeline Advisor