Foreign investment in Canadian securities drops in July
OTTAWA (Reuters) - Foreign investment in Canadian securities had its biggest decline in seven months in July as investors sold their equity holdings, data from Statistics Canada showed on Wednesday.
Non-residents sold C$10.12 billion ($7.64 billion) in Canadian assets. Equities positions declined by C$9.72 billion as cross-border merger and acquisitions activities caused foreign portfolio investors to tender their Canadian shares.
A C$3.1 billion increase in foreign investment of Canadian shares on the secondary market moderated the overall decline. Investors also reduced their holdings of Canadian debt securities by C$406 million, the first divestment this year.
Canadians' holdings in foreign securities edged down by C$236 million in July as funds moved from equities to debt securities.
Canadians sold C$4.24 billion of both U.S. and non-U.S. foreign equities, while purchases of foreign debt rose by C$4.0 billion as investors picked up U.S. Treasury bonds.
(Reporting by Leah Schnurr; Editing by Lisa Von Ahn)
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