Portfolio Investments May 2007

Swedish investors continue to show great interest in foreign equity securities

Cross-border portfolio investment generated a net outflow of SEK 4.5 billion in May. Equity trading resulted in a net outflow of SEK 33.6 billion and trade in debt securities gave an inflow of SEK 29.1 billion.

In total, foreign investors’ net purchases of Swedish debt securities amounted to SEK 66.5 billion, compared with SEK 13.5 billion the previous month. The main factor behind the flow was foreign investors' net purchases of foreign currency bonds, amounting to SEK 57.5 billion, SEK 35.8 billion of which were newly-issued securities from Swedish banks. This month, Swedish investors bought foreign debt securities to a total net value of SEK 37.4 billion.

The relatively large net outflow generated by equity trading in May is explained by Swedish investors making net purchases of foreign equity, while foreign investors sold Swedish equity. As regards foreign equity, trade in equity securities issued in the other Nordic countries and the United States were predominant. The largest net trade in Swedish equity was in the Teligent and Swedbank shares, with net purchases by Swedish investors totalling SEK 2.1 billion and SEK 0.8 billion respectively.