Foreign investment in Canadian securities hit a five-month high in April as non-residents targeted the bond market after four straight months of divestment, Statistics Canada said on Friday.
Outsiders bought a net $9.13-billion of securities in April, the most since the $20-billion they racked up last November.
Foreigners purchased a net $8.79-billion in bonds as they focused on new corporate issues denominated in foreign currencies. They sold off federal government bonds for the fifth straight month.
Non-residents also bought $2.41-billion worth of Canadian stocks – focusing on the finance and insurance sector – while selling off $2.07-billion in money market paper.
Canadian investors reduced their holdings of foreign securities by a net $652-million as they sold off a record $11.25-billion in U.S. shares. At the same time they invested in non-U.S. foreign shares as well as bonds while disposing of money market paper.