Canadian investors scooped up $2.6 billion worth of international securities in September, down from $12.4 billion the previous month, Statistics Canada said today.

Meanwhile, European and U.S. investors sold Canadian securities, mostly shares of resource companies, in September, a reversal from the heavy buying that had taken place since January, StatsCan said.

Total purchases of foreign securities by Canadian investors for the first nine months of this year hit a record $61.6 billion, just short of the annual high of $63.9-billion posted in 2000, Statscan said.

Canadians curbed their buying of foreign shares in September, with purchases falling from $5.2 billion in August to $98 million in September.

However, Canadian purchases of U.S. and other foreign-market paper reached $1.1-billion, the third consecutive month of strong purchases for these instruments resulting in a record third-quarter investment of $5-billion.


Foreign investors pared their holdings of Canadian securities by $3.1 billion in September, contrary to expectations for a modest rise. They sold $2.75 billion worth of equity and $664-million in bonds. They bought $334 million of Canadian money-market paper, a slowdown from the $915-million purchased in August.

Statscan reported that European investors were the largest sellers of Canadian shares in September, dumping $2.7 billion in equities after buying $1.7 billion in July and August. Shares of Canadian mining, and oil and gas firms topped the sell-off list.

Investors from the European Union and the United States sold $4 billion and $732 million worth of Canadian shares, respectively.

Despite September’s drop, foreign net purchases so far this year have reached $20.5-billion, up from $8.39-billion during the same period last year.