Non-residents invested a net $3 billion in Canadian securities in January, reversing a $7.4 billion divestment in December, Statistics Canada said today.

Meanwhile, Canadians bought $3.7 billion in securities outside the country, setting a record for bond purchases while selling off equities.

Non-residents bought $4.7 billion in Canadian shares in January, while selling $1.3-billion in bonds.

These foreign purchases of outstanding Canadian shares were at their highest level in almost six years and helped push up stock market prices.

After purchasing a record $27.6 billion of foreign bonds in 2005, Canadian investors continued the trend into 2006 by acquiring a further $4.5 billion worth in January, a monthly record.

Investment for the month was concentrated in U.S. treasury bonds with purchases totalling $3.4 billion, the largest investment by Canadians in U.S. treasury bonds in more than three years. Canadian investors also continued to purchase U.S. corporate and overseas issues totalling $1.1 billion.