UPDATE 1-Foreigners resume purchases of Canadian securities in March

Thu May 16, 2013 8:33am EDT
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* Foreign investors buy C$1.19 billion of Canadian securities

* Canadians add C$3.81 billion of foreign securities

OTTAWA May 16 (Reuters) - Foreign investors resumed their purchases of Canadian securities in March after a big sell-off in February, boosting their portfolios by a relatively modest C$1.19 billion ($1.17 billion), Statistics Canada data indicated on Thursday.

Non-residents had dumped C$6.28 billion in February, reflecting merger and acquisition activity.

Canadians added C$3.81 billion of foreign securities, the fourth time in five months that domestic investment abroad had outpaced foreign investment in Canada.

Foreign investment in Canadian bonds slowed for a second straight month in March, dropping to C$5.16 billion, with most money going into government bonds. Non-residents withdrew C$3.37 billion from the Canadian money market and sold off C$0.60 billion worth of equities.

Canadian investors added C$1.98 billion of foreign equities to their holdings in March. They also acquired C$1.92 billion of foreign bonds, much of that in non-U.S. bonds.