* Foreign investment nearly halved to C$4.41 bln
* Biggest divestment in money market since July 1994
* Led by retirement of federal T-bills
* Foreigners add bonds and stocks
* Canadians sell C$95 mln in foreign securities
OTTAWA, Dec 16 (Reuters) - Foreign investment in Canadian securities was roughly halved in October, with money market holdings slumping because of the retirement of federal T-bills but substantial investment being made in bonds and equities, Statistics Canada said on Monday.
Net foreign investment fell to C$4.41 billion ($4.16 billion) from C$8.29 billion in September.
Foreigners made their largest divestment in money market instruments since July 1994, reducing their holdings by C$6.16 billion after C$12.42 billion of investment over the previous six months. They made net sales of federal treasury bills of C$5.21 billion.
The divestment in the money market was almost exactly offset by C$6.12 billion in purchases in bonds, but this was mostly in corporate rather than government bonds.
Foreigners added C$4.45 billion in equities to their portfolios in October, down from C$10.71 billion in September.
Canadians overall sold a minimal amount of foreign securities in October, a net C$95 million, unloading foreign stocks but buying foreign money market instruments and bonds.