Foreign investors buy fewer Canadian securities in November

Thu Jan 17, 2013 8:41am EST
 

OTTAWA (Reuters) - Foreign investment in Canadian securities more than halved to a six-month low of C$5.62 billion ($5.67 billion) in November as non-residents cut back purchases of debt, Statistics Canada said on Thursday.

Although Canada's relatively strong fiscal position has made it an attractive safe haven for investors, November's figure was the worst since June, when foreigners sold off Canadian securities. In contrast, Canadian purchases of foreign securities hit a 5-1/2 year high in November.

Statscan revised October's foreign purchases to C$12.67 billion from an initial C$13.26 billion. In the first 11 months of 2012, foreign investors bought C$85.22 billion in Canadian securities, slightly less than the C$89.11 billion recorded from January to November 2011.

Non-residents bought C$5.58 billion of Canadian debt securities, the lowest amount since July, while purchasing C$3.85 billion in money market paper. Investment in bonds plummeted to C$1.73 billion from C$15.49 billion in October.

Canadian investors bought C$7.81 billion in foreign securities, up from C$3.36 billion in October, and the highest since the C$12.55 billion recorded in April 2007.

Acquisitions of foreign debt securities hit a 5-1/2 year high of C$6.17 billion, thanks largely to a record C$5.70 billion purchase of U.S. government bonds.

($1=$0.99 Canadian)

(Reporting by David Ljunggren; Editing by Maureen Bavdek)