OTTAWA — Canadians sold $1.2-billion worth of foreign securities in June, the first month since January they had done so, says Statistics Canada.
And while foreigners bought $815-million in Canadian securities in June, it was half their investment of May.
However, “foreign investors added a further $1.6-billion to their holdings of Canadian money market paper in June, the largest increase since November 2002,” the agency said Wednesday.
While Canadians continued to invest in U.S. equities, they shied away from overseas stocks, selling off $1.8-billion, the biggest divestment of overseas equities since October 2002.
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“Following six consecutive months of purchases totalling $8.3-billion in foreign bonds, Canadians turned around and sold off $413-million in June,” Statistics Canada said. “U.S. treasuries, which were a favoured investment for Canadians over the six months of accumulation, were the hardest hit in June with $581-million in sales.”
During the second quarter, foreign investors purchased $1.8-billion of Canadian money market paper, largely offsetting the $2.8-billion divested during the first quarter.
For the second time this year, foreigners decreased their holdings of Canadian bonds, which fell by $299-million in June, in contrast to the $1.7-billion purchased in May.
Foreign holdings of Canadian stocks fell for the second straight month as investors sold $523-million worth.