Foreign Buying of Canadian Securities Reaches Highest in a Year

Foreign investors made the biggest purchase of Canadian securities in a year in April, buying stocks and selling government debt for an eighth straight month.

Purchases totaled a net C$10.1 billion ($9.3 billion) in April, rebounding from March’s net sale of C$1.41 billion, Statistics Canada said today in Ottawa.

Foreign investors bought C$3.64 billion of stocks in April as equity prices reached the highest since May 2008. Investors also bought C$4.10 billion of money-market paper led by provincial government securities, the agency said today.

The April purchase still leaves year-to-date foreign demand for Canadian securities of C$16 billion below the C$24.5 billion total for the same period last year. Demand for federal government bonds has been the chief drag, with a net sale of C$8.92 billion so far this year following a purchase of C$7.85 billion from January to April 2013.

Canadians bought C$2.49 billion of foreign securities in April, with a net stock purchase of C$3.51 billion offsetting a C$1.03 billion sale of debt instruments.

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editor responsible for this story: Paul Badertscher at pbadertscher@bloomberg.net;

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