UPDATE 1-Foreign purchases of Canadian securities more than double in Oct

Tue Dec 16, 2014 8:36am EST
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(Adds details of release, background)

OTTAWA Dec 16 (Reuters) - Foreign investment in Canadian securities more than doubled to C$9.53 billion ($8.15 billion) in October from C$4.64 billion in September, with the focus on bonds and stocks, Statistics Canada said on Tuesday.

Canada remains an attractive destination for non-residents seeking stable returns. Net foreign investment for the year to date totaled C$66.88 billion, up from C$38.28 billion in the first 10 months of 2013.

Non-resident investors put C$9.13 billion into bonds, both from the government and corporate sectors, and snapped up C$4.16 billion in stocks. Canadian stock prices fell 2.3 percent in October but were 7.3 percent higher than in December 2013.

Foreign investors also withdrew C$3.77 billion from the money market with the reduction occurring mainly in provincial paper. Canadian short-term interest rates ended down four basis points in October.

Canadian investors bought just C$293 million in foreign securities after purchasing C$8.26 billion in September. They added C$2.44 billion worth of foreign equities, mainly U.S. shares, while selling off C$2.97 billion worth of bonds.

Canadian investment in foreign securities hit C$40.63 billion in the first 10 months of the year, up sharply from the C$18.13 billion seen in January-October 2013.

($1=$1.17 Canadian) (Reporting by David Ljunggren; Editing by Chizu Nomiyama)