UPDATE 1-Foreigners double Canadian bond purchases in August

* Foreigners bought C$11.1 billion of Canadian securities

* Canadians add C$3.4 bln in foreign securities
(Adds details)

OTTAWA, Oct 18 (BestGrowthStock) – Attractive yields on some
corporate bonds helped boost foreign investment in Canadian
securities in August to C$11.09 billion ($10.87 billion) from
C$5.51 billion in July, Statistics Canada said on Monday.

Statscan said the heavy inflow of foreign investment, which
surpassed analysts’ expectations of C$5 billion, and the
moderate Canadian investment abroad in the month extended the
20-month trend.

Non-residents invested the second largest amount so far in
2010 in Canadian bonds in August, adding C$10.80 billion to
their portfolios. Of the total, they spent C$5.30 billion on
private corporate bonds, mainly new issues from resources and
transportation companies.

Foreigners returned to the Canadian stock market in August
after net divestments in July, buying C$995 million as stock
prices rose 1.7 percent. They reduced their holdings of money
market instruments by C$705 million as many of these securities
matured in the month.

Canadians for their part invested C$3.38 billion in foreign
securities in August after divesting C$2.98 billion the
previous month. They bought C$2.48 billion in foreign stocks,
the largest amount since March and made up mostly of U.S
equities.
($1=$1.02 Canadian)
(Reporting by Louise Egan and Howaida Sorour; Editing by
Padraic Cassidy)

UPDATE 1-Foreigners double Canadian bond purchases in August