By The Canadian Press | November 17, 2011
OTTAWA - Foreign investors added $7.4 billion of Canadian securities to their holdings in September, led by acquisitions of federal treasury bills.
Statistics Canada reports Canadian investment in foreign securities slowed to $718 million and remained focused on foreign stocks.
Non-residents acquired $7.2 billion of Canadian short-term securities in September, just short of the $7.4-billion high of July 2011.
For the third quarter, non-residents' investment in Canadian money market instruments was $16.2 billion, surpassing the high of $9.9 billion in the fourth quarter of 2008.
Non-residents removed $612 million from their holdings of Canadian bonds in September, following a $6-billion acquisition in August.
Canadian investors added $1.3 billion of foreign stocks to their portfolios, led by acquisitions of U.S. corporate shares.
Canadian investors reduced their holdings of foreign bonds by $469 million, mostly U.S. corporate bonds.
Canadians also reduced their holdings of foreign money market instruments by $151 million in September, all U.S. treasury bills.
http://www.canadianbusiness.com/article/57612--foreign-buyers-boost-canadian-securities-canucks-slow-foreign-investment
1 comment:
In the month of September, foreign investors acquired $7.4 billion Canadian securities. This is a positive update, as the August sale of securities slowed. Non-residents investments in Canadian money market instruments were $6.3 billion more than in the fourth quarter of 2008. However, they removed $612 million from their holding of Canadian bonds in September. This shows how much money pours in from the purchase of Canadian securities which emphasizes the importance of foreign investors in the Canadian economy. Usually, the U.S. treasury is seen as a safe haven for investors. When the global economy becomes unstable, so does the confidence of investors who then run to the U.S. markets. This is detrimental to Canadian growth and is an ongoing problem. If Canada shows the world that its markets are equally stable as the U.S. then it would not have such a high withdrawal of funds like the ones seen in August.
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