October 17, 2013 / 12:38 PM / 4 years ago

UPDATE 1-Foreign purchases of Canadian securities slump in August

* Foreign investment drops to C$2.08 bln from C$6.11 bln

* Canadian investment rises to C$5.65 bln from C$0.95 bln

OTTAWA, Oct 17 (Reuters) - Foreign investment in Canadian securities fell to C$2.08 billion ($2.02 billion) in August from C$6.11 billion in July, with purchases so far this year running at less than half last year’s pace, Statistics Canada said on Thursday.

Canada - one of the few nations with a AAA debt rating - was an attractive destination for investors seeking security in the wake of the 2008 recession but foreign investors seemed to be losing their enthusiasm for Canadian securities.

Investment in bonds dropped to C$2.03 billion from C$3.64 billion in July as non-residents cut their holdings of government bonds for the third time in four months. Foreigners also sold C$2.19 billion in stocks after four straight months of purchases and bought C$2.24 billion worth of money market paper.

Purchases of Canadian securities in the first eight months of 2013 totaled C$24.00 billion compared with C$51.24 billion in the same year-ago period.

Canadian investors bought C$5.65 billion worth of foreign securities - the largest amount since the C$8.10 billion they snapped up in November 2012 - compared with the $0.95 billion worth they added in July.

Canadian purchases of foreign securities in the first eight months of 2013 were C$17.05 billion, up from C$12.14 billion in January-August 2012.

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