BUSINESS

Foreigners reduce holdings of Cdn equities in February: StatsCan

04/16/2013 08:54 EDT | Updated 06/16/2013 05:12 EDT
OTTAWA - Statistics Canada says non-resident investors cut their holdings of Canadian securities by $6.3 billion in February, reflecting declines in holdings of equities and, to a lesser extent, money market instruments.

It says Canadians bought $4.4 billion worth of foreign securities, mainly bonds.

Canadian investment in foreign securities has exceeded foreign investment in Canadian securities in three of the last four months.

Non-residents reduced their holdings of Canadian equities by $11.6 billion in February, the biggest divestment since October 2007.

Cross-border mergers and acquisitions accounted for most of the reduction, as non-resident portfolio investors rendered their Canadian shares to foreign direct investors.

Foreign acquisitions of $1.8 billion worth of Canadian shares on the secondary market moderated the overall divestment.