Source: The Canadian Press

Strong foreign investment in Canadian securities was sustained in September as non-residents added a further $12.3 billion to their portfolios.

Statistics Canada reports non-residents have purchased a total of $87.2 billion in Canadian securities over the first three quarters of 2010.

Meanwhile, Canadian acquisitions of foreign securities strengthened to $4.6 billion in September, the largest outflow since March.

Non-residents acquired $8.8 billion in Canadian bonds in September, focusing on U.S. dollar- and Euro-denominated private corporate and provincial bonds.

Non-resident investors purchased $3.6 billion in Canadian private corporate bonds in September, dominated by new bonds issued by resource and financial firms.

In addition, foreign demand for Canadian provincial bonds rebounded, comprised of both new issues and secondary market activity.

Foreign investment in federal government bonds levelled off in September, accounting for a $1.9 billion inflow of funds from abroad.