UPDATE 1-Foreign buys of Canadian securities slow in June

* Foreigners attracted by provincial bonds

* Canadian investment abroad rebounds
(Adds details)

OTTAWA, Aug 17 (BestGrowthStock) – Foreign investment in Canadian
securities slowed considerably in June to C$5.4 billion ($5.2
billion) after two months of heavy buying, Statistics Canada
said on Tuesday.

The June investment fell short of the C$8.5 billion in
foreign acquisitions expected by analysts in a Reuters poll and
was well below the C$23.04 billion investment in May.

New bond issues by provincial governments garnered the most
interest, representing C$4.2 billion of the total C$7 billion
in Canadian bonds that nonresidents added to their portfolios.

They divested C$1.6 billion in Canadian money market paper
in the month, following the Bank of Canada’s June 1 interest
rate hike. Stock purchases were marginal at C$48 million, down
sharply from the previous two months.

Canadians investment in foreign securities rebounded to C$4
billion from a divestment of C$2.9 billion in May.

Canadians acquired C$2.6 billion in foreign bonds and C$2.1
billion in stocks, while reducing their holdings in foreign
money market paper by C$650 million in June.
(Editing by Jeffrey Benkoe)
($1=$1.04 Canadian)

UPDATE 1-Foreign buys of Canadian securities slow in June