Foreign Investors Dump the Most Canadian Stocks Since 2007
- Record high inflation in June sent investors fleeing stocks
- They reduced their exposure to equities by C$12.6 billion
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Foreign investors pulled the most money out of Canadian stocks in 15 years amid fears that recession would hit an equity market that’s highly sensitive to changes in the economic cycles.
They reduced their exposure by C$12.6 billion ($9.8 billion) in June, the third consecutive month of outflows, according to Statistics Canada data released on Tuesday. Foreign investors took out the most money since 2007 as inflation soared at its fastest pace in four decades. Canadian stocks tend to be dominated by cyclical industries like banks and energy companies.