Statistics Canada reported today that foreign investment in Canadian securities was “nominal” in April.
The agency says non-residents purchased $230 million worth of Canadian securities during the month, a substantial decline from the $2.0 billion bought in March and the smallest investment since August 2004.
Acquisitions for the month were entirely due to a number of minor placements of Canadian shares in foreign markets as well as a few small takeovers of foreign companies by Canadian firms. These transactions amounted to $219 million over the month.
Foreign investment in Canadian bonds was also relatively flat. Non-resident investors sold $301 million worth, after purchasing $412 million the month before.
In contrast, Canadians were heavily into foreign securities, acquiring $2.7 billion worth in April, with most purchases going to foreign bonds.
Over three-quarters, or $2.2 billion, of their total investment went into foreign bonds with all purchases going into U.S. bonds, mainly U.S. treasury issues. Canadians made a slight divestment in overseas bonds over the month.