Foreign investors continued to increase their holdings of Canadian securities, acquiring $815 million in June. However, that was half of May’s investment.

June’s investment was the result of increased purchases of Canadian money market paper as non-residents reduced holdings of both Canadian stocks and bonds.

Foreign investors added a further $1.6 billion to their holdings of Canadian money market paper in June, the largest increase since November 2002. Investors out of Asia were by far the biggest purchasers in June, buying $1.3 billion.

For only the second time this year, foreign investors decreased their holdings of Canadian bonds, which fell by $299 million in June. This was in contrast to the $1.7 billion purchased in May.

Meanwhile, foreign holdings of Canadian stocks fell for the second straight month in June as foreign investors sold off $523 million worth.

For the first time since January of this year, Canadian investors sold off some of their holdings of foreign securities, selling off $1.2 billion in June.

After purchasing $1.3 billion of foreign stocks in May, Canadian investors sold $782 million in June. While Canadian investors continued to invest in US equities, they shied away from overseas stocks, selling off $1.8 billion, the biggest divestment of overseas equities since October 2002.

Following six consecutive months of purchases totalling $8.3 billion in foreign bonds, Canadians turned around and sold off $413 million in June.

http://www.statcan.ca/Daily/English/040818/d040818a.htm