Portfolio Investments, February 2007

Cross-border portfolio investment generated a net inflow of SEK 3.1 billion in February, which can be compared with a net inflow of SEK 94 billion in January.

In total, foreign investors bought Swedish debt securities to a net total of SEK 28.4 billion, compared with SEK 129 billion the previous month. Once again it was the banks that issued large volumes, which gave a net inflow of SEK 38.5 billion, but this was counteracted by a net reduction of SEK 3.3 billion in foreign investors’ holdings of securities denominated in foreign currency issued by, for instance, the housing sector. Moreover, foreign investors' holdings of SEK-denominated securities declined, primarily due to foreign sales of government and mortgage bonds, which led to a net total outflow of SEK 16.4 billion.

Equity trading led to a net inflow of SEK 1.8 billion. This inflow is mainly explained by Swedish investors reducing their holdings in foreign equity securities by SEK 3.2 billion. Foreign investors’ net sales of Swedish equity securities amounted to SEK 1.3 billion. The most traded shares were Nordea and Handelsbanken, with net sales abroad amounting to SEK 0.7 billion and SEK 0.6 billion respectively.