UPDATE 1-Foreign investors were net sellers of Canadian securities in June

Mon Aug 18, 2014 8:55am EDT
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(Adds details of release, background)

OTTAWA Aug 18 (Reuters) - Foreign investors sold a net C$1.07 billion ($0.98 billion) worth of Canadian securities in June, a sharp reversal from the previous month, Statistics Canada said on Monday.

Canada remains an attractive destination for nonresident investors. Net investment by foreigners was C$21.42 billion in May and C$36.35 billion in the first six months of 2014, compared to C$42.79 billion recorded for all of 2013.

"Both Canadian long- and short-term interest rates were up in June, while the Canadian dollar appreciated against its U.S. counterpart by 1.5 U.S. cents at the end of the month," Statscan said in a commentary.

Foreigners sold C$3.85 billion worth of bonds in June, the first such divestment since January of this year. They disposed of C$11.89 billion worth of government bonds, most of it issued federally, while buying C$8.04 billion in corporate bonds.

Non-resident investment in equities hit C$2.55 billion in June and totaled C$16.29 billion in the first half of the year, compared to a divestment of C$3.13 billion in the first six months of 2013.

Canadians bought a net C$1.96 billion worth of foreign securities in June, the ninth consecutive month of purchases. Acquisitions were concentrated in foreign equities, with C$2.05 billion split evenly between U.S. and non-U.S. shares.

($1=$1.09 Canadian) (Reporting by David Ljunggren; Editing by Paul Simao)