* Foreign investment in Canada securities C$6.67 bln in July
* Foreigners had reduced holdings by C$7.76 bln in June
* Canadian firm issued new equity as it bought a foreign
* Canadian investment in foreign securities C$4.56 bln in
* Investment in foreign securities was C$4.12 bln in June
OTTAWA, Sept 17 Foreigners resumed their net
purchases of Canadian securities in July, taking on C$6.67
billion ($6.88 billion) after having reduced their holdings by
C$7.76 billion in June, Statistics Canada said on Monday.
The biggest component was a C$6.10 billion purchase of
Canadian bonds, after large retirements in June. The acquisition
was partly offset by a C$4.12 billion divestment of money market
Investment in equities amounted to C$4.69 billion. "New
equity issues led the inflows over the month, with the bulk
related to cross-border merger and acquisition activity," the
government agency said.
It involved a Canadian company's issuing of new stock to
shareholders of a foreign company that it bought. Statscan did
not name the firms involved.
Canadian authorities have said foreign investors view Canada
as a safe haven. So far this year foreigners have made C$41.23
billion in net purchases, a substantial amount though down from
C$54.31 billion seen in the first seven months of 2011.
Canadian investment in foreign securities rose to C$4.56
billion from C$4.12 billion, with net purchases of foreign
stocks hitting a four-month high of C$2.28 billion.