By Paul Vieira
OTTAWA--Foreign investment in Canadian securities slowed in May following a record purchase in the previous month. Meanwhile, Canadian purchases abroad rebounded after two straight months of selloffs, led by demand for equities.
Nonresidents acquired a net 22.41 billion Canadian dollars (US$16.56 billion) of Canadian securities for their portfolios in May, Statistics Canada said Thursday. This followed a record buying spree in April of C$49.03 billion.
Canadians acquired a net C$13.37 billion in foreign securities in May.
As a result, international transactions generated a net inflow of funds of C$9.04 billion in the Canadian economy in the month.
Statistics Canada said the activity in May unfolded after another month of large borrowings by the Canadian government on the debt market, and a continued recovery of major global stock markets. Canada said last week it expects to issue over C$400 billion in debt in the current fiscal year, to finance a surge in spending prompted by the new coronavirus.
The monthly international securities report covers portfolio transactions in equity and investment fund shares, bonds and money market instruments for both Canadian and foreign issues. This activity excludes transactions in equity and debt instruments between affiliated enterprises.
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