OTTAWA (Reuters) - Foreign investors scooped up Canadian securities for the sixth month in a row in June, driven by the largest purchase of Canadian equities since April 2004, data from Statistics Canada showed on Thursday.
Foreign investment in securities totaled a net C$9.02 billion ($7.03 billion) in June, while May’s purchases were revised slightly lower to C$13.99 billion from the initially reported C$14.73 billion.
The inflow of investment was due to a C$13.41 billion purchase of Canadian stocks. The bulk of this was due to the issuance of new Canadian shares to foreign portfolio investors as a result of cross-border mergers and acquisitions.
Foreign investors also purchased C$2.6 billion of Canadian shares on the secondary market, despite Canada’s main stock index being little changed in June.
Non-resident investors reduced their bond holdings by C$3.36 billion as investors owned fewer federal government bonds, mainly due to the retirement of securities denominated in Canadian dollars.
At the same time, Canadians bought a net C$4.15 billion worth of foreign securities, including a C$5.69 billion purchase of equities, the largest investment in stocks so far this year.
Canadians picked up C$4.0 billion of non-U.S. foreign shares and C$1.7 billion in shares south of the border. Canadians reduced their holdings in foreign bonds by C$1.13 billion.
Reporting by Leah Schnurr Editing by W Simon