Statistics Canada reported on Monday that foreign investment in Canadian securities rose by CAD 28.4 billion in January 2019, following an upwardly revised CAD 20.49 billion divestment in December (originally -CAD18.96 billion). That was the highest foreign investment since May 2017. According to the report, foreign acquisitions of Canadian debt securities totalled CAD19.4 billion in January and the bulk of the investment was in government debt securities, mainly federal government instruments.
Non-resident investment in federal government bonds reached a record $12.9 billion in January, and mainly targeted secondary market purchases of Canadian dollar-denominated instruments.
Meanwhile, foreign investors cut their holdings of private corporate bonds by CAD 1.3 billion, the second consecutive month of divestment.
Non-resident investors resumed their acquisitions of Canadian money market instruments in January by adding CAD 5.1 billion to their holdings.
Foreign investment in Canadian equities amounted to CAD 9.0 billion in January, the largest investment since February 2017.
Meantime, Canadian investors lowered their holdings of foreign securities by CAD 8.8 billion, led by sales of the U.S. shares.
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