(Adds details of release, background)
OTTAWA Aug 18 Foreign investors sold a net
C$1.07 billion ($0.98 billion) worth of Canadian securities in
June, a sharp reversal from the previous month, Statistics
Canada said on Monday.
Canada remains an attractive destination for nonresident
investors. Net investment by foreigners was C$21.42 billion in
May and C$36.35 billion in the first six months of 2014,
compared to C$42.79 billion recorded for all of 2013.
"Both Canadian long- and short-term interest rates were up
in June, while the Canadian dollar appreciated against its U.S.
counterpart by 1.5 U.S. cents at the end of the month," Statscan
said in a commentary.
Foreigners sold C$3.85 billion worth of bonds in June, the
first such divestment since January of this year. They disposed
of C$11.89 billion worth of government bonds, most of it issued
federally, while buying C$8.04 billion in corporate bonds.
Non-resident investment in equities hit C$2.55 billion in
June and totaled C$16.29 billion in the first half of the year,
compared to a divestment of C$3.13 billion in the first six
months of 2013.
Canadians bought a net C$1.96 billion worth of foreign
securities in June, the ninth consecutive month of purchases.
Acquisitions were concentrated in foreign equities, with C$2.05
billion split evenly between U.S. and non-U.S. shares.
(Reporting by David Ljunggren; Editing by Paul Simao)