Foreign investment in Canadian securities totals 5.4 bln USD in October

OTTAWA, Dec. 16 (Xinhua) — Foreign investment in Canadian securities totaled 6.9 billion Canadian dollars (about 5.4 billion U.S. dollars) in October, Statistics Canada said Wednesday.

Meanwhile, Canadian investors acquired 8 billion Canadian dollars in foreign securities, largely foreign government bonds.

As a result, international transactions in securities generated a net outflow of funds from the Canadian economy of 1 billion Canadian dollars in October.

In October, foreign investment in Canadian securities mainly reflected foreign acquisitions of government bonds moderated by a divestment in private corporate bonds.

Non-residents acquired 4.6 billion Canadian dollars of federal government bonds in October, following a divestment of 6.4 billion Canadian dollars in September.

Overall, the Canadian federal government issued a record amount of 55.5 billion Canadian dollars of new bonds on financial markets in October.

At the same time, non-residents reduced their holdings of private corporate bonds by 5.5 billion Canadian dollars, their largest divestment since July. This activity was driven by net retirements of Canadian chartered bank bonds denominated in the U.S. dollar.

Foreign investment in Canadian equity securities was 571 million Canadian dollars in October, down from an investment of 4.2 billion Canadian dollars in September.

This was the lowest foreign investment in the Canadian equity market in four months. Canadian stock prices fell 4.4 percent in October overwriting the gain of the third quarter.

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