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.

Statistics Canada today reported that non-residents sold $9.5 billion worth of Canadian stocks in November, but snapped up $4.8 billion in government bonds.

Meanwhile, Canadians disposed of $4.5 billion of foreign securities in November, all in foreign bonds.

StatsCan said non-residents were keen for federal government bonds, especially since the interest rate differential between Canada and the United States widened in November, making Canadian investment more attractive.

The selloff of equities by non-residents in November came as Canadian stock prices experienced the largest monthly decline in five years, Statistics Canada said.

Canadian investors bought $717 million in foreign stocks in November, with shares in U.S. banks topping their investment list. At the same time, they sold $495 million worth of non-U.S. shares.