Portfolioinvestment October 2005

Swedish investors sold foreign shares Cross-border investment in portfolio shares and debt securities gave rise to capital inflows of SEK 8.6 billion in October. The statistics indicate that foreign investors' net purchases of Swedish securities amounted to SEK 24 billion, while Swedish investors’ net purchases of foreign securities totalled SEK 15.4 billion. Foreign purchases of Swedish debt securities gave a net inflow of SEK 22.4 billion in October. There was considerable interest in securities denominated in foreign currencies, with net purchases totalling SEK 24.9 billion. These purchases were primarily based on several new issues abroad, mainly by banks and mortgage institutions. During the first ten months of the year, the Swedish banking sector’s new issues of securities denominated in foreign currencies totalled SEK 180 billion. On the other hand, foreign investors reduced their holdings in SEK-denominated securities by SEK 2.5 billion, mainly due to short-term instruments maturing. Swedish investors continued to make net purchases of foreign debt securities. They showed particular interest in bonds, which accounted for SEK 14.7 billion of the total SEK 22.2 billion invested abroad. Swedish holdings of foreign equity securities declined by SEK 6.8 billion during October. Foreign investors' net purchases of Swedish equity securities during the same period totalled SEK 1.6 billion. The Hexagon and SEB shares attracted the greatest interest, with trade in these shares resulting in foreign net purchases to a value of SEK 3.2 billion. IT is worth noting that during October Hexagon acquired Leica Geosystems in Switzerland. Part of the purchase price was paid in the company's own shares, which in this publication is reported as foreign purchases of Hexagon shares.