Non-residents continue to buy up Canadian securities
Sunday, April 18, 2010
OTTAWA -- Foreign investors continued to buy up Canadian securities in February, although at a slower pace than the previous month, Statistics Canada said Monday. Non-residents purchased a net total of $6.72-billion during the month, with all of those investments going toward Canadian bonds. That's down from $11.84-billion in January and $11.14-billion in December. The overall effect on the stock markets are expected to increase with a time frame, this is mainly because of the low interest rates in the U.S thus, many investors are seemingly looking forward for high returns, and reducing the default risks investors tend to with draw their money from the U.S STOCK MARKETS. Economists had expected purchases of between $9-billion and $10-billion in February. Foreigners sold $855-million worth of Canadian money-market paper in February and divested $193-million in stocks.Meanwhile, Canadians bought $3.92-billion of foreign debt and equities in February, "the largest outflow since March 2009, following significant divestments in January," the agency said. Canadians purchased $1.81-billion in foreign bonds, mainly U.S. government issues, and $1.36-billion in equities and $749-million in money market instruments.Read more: http://www.financialpost.com/related/topics/story.html?id=2924285#ixzz0lYqp39EK