Portfolio Investments June 2007

Foreign investors sold off Swedish SEK-denominated securities

Cross-border portfolio investment generated a net outflow of SEK 65.2 billion in June. Trade in debt securities accounted for the large outflow, as equity trading resulted in a net figure close to zero.

In total, foreign investors sold Swedish debt securities to a net total of SEK 47 billion, most of which were denominated in SEK. The net sales consisted mainly of long-term government bonds, but foreign investors also sold long-term bank and housing. During the month there were also several large-scale bonds reaching maturity and repurchases of securities denominated in foreign currencies and issued by the bank sector, which all contributed to the large net outflow.

Swedish investors also showed considerable interest in foreign debt securities, with net purchases amounting to SEK 18.8 billion in June.

Although the net flow generated by equity trading this month was relatively small, net purchases of Nordea Bank by foreign investors amounted to SEK 2.1 billion. The most sold share by foreign investors was H&M, with sales totalling SEK 2.2 billion.