OTTAWA (Reuters) - Foreign investment in Canadian securities rose in August after a big decline in the previous month as investors picked up debt assets but reduced their exposure to stocks, data from Statistics Canada showed on Friday.
Non-residents bought C$3.11 billion ($2.41 billion) in Canadian securities, Stastcan said in reporting net investment figures. Foreign investors picked up C$5.6 billion in Canadian bonds, mainly in federal government and federal government business bonds.
But investors reduced their positions in stocks for the third time in four months, decreasing their holdings by C$2.74 billion. The Canadian stock market slumped 4.2 percent in August, its largest decline in 11 months.
Canadians also resumed their purchases of foreign securities, buying up C$8.74 billion in investments. Purchases of foreign equities rose by C$5.83 billion, the biggest increase since July 2014. Of that, C$3.2 billion went into U.S. shares, the highest amount this year even as stock prices were declining south of the border.
Reporting by Leah Schnurr Editing by W Simon