Foreign investors slow acquisitions
OTTAWA — Acquisitions of Canadian securities by foreign investors slowed to $5.4 billion in June after two months of substantial investment. Meanwhile, Statistics Canada reports Canadian acquisitions of foreign securities rebounded in June, with investors adding $4 billion to their portfolios, mainly non-U.S. foreign securities.
Non-residents added a further $7 billion of Canadian bonds to their portfolios in June, following large acquisitions of $10 billion in April and $15.2 billion in May. The agency says it was the 18th straight month of such investment activity, with foreign holdings of Canadian bonds up by nearly 20 per cent over that time.
Non-residents withdrew $1.6 billion from the Canadian money market in June. Divestment of $2.2 billion in federal paper was moderated by acquisitions of paper issued by Canadian banks.
Marginal foreign investment in Canadian equities of $48 million in June was down sharply from April and May.
Strong foreign purchases of Canadian gold and industrial shares were offset by sales of banking and information technology shares in June.
These latter two sectors significantly contributed to the four per cent decline in Canadian equity prices in June, as the Canadian stock market gave up the 2010 gains by month-end. Canadian investment in foreign bonds reached $2.6 billion in June, following a significant divestment in May. Canadian investors reduced their holdings of foreign money market paper by $650 million in June, the largest such portfolio adjustment to date in 2010.
Manufacturing sales rise again
OTTAWA — Manufacturing sales edged up 0.1 per cent in June to $44.8 billion.
It’s the 11th increase since manufacturing sales bottomed out 13 months previous. Statistics Canada reports constant-dollar manufacturing sales rose 0.7 per cent to $41.7 billion in June, 15.3 per cent higher than their lowest recession level in May 2009.