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NET ACQUISITIONS OF FOREIGN EQUITIES BY U.S. INVESTORS ROSE TO RECORD IN FOURTH 1991 QUARTER, SIA SAYS

 NET ACQUISITIONS OF FOREIGN EQUITIES BY U.S. INVESTORS
 ROSE TO RECORD IN FOURTH 1991 QUARTER, SIA SAYS
 /ADVANCE/ NEW YORK, April 1 /PRNewswire/ -- Net acquisitions of foreign equities by U.S. investors rose to a record in the final 1991 quarter, pushing full year net purchases to more than twice the previous yearly peak and the equivalent of cumulative net takedowns in the 1982- 1990 period, a Securities Industry Association economist said today.
 In the quarter, U.S. investors acquired a net $9.6 billion foreign equities, compared with $8.8 billion in the third quarter and the previous quarterly record -- $9.4 billion -- in the second 1991 quarter, SIA said.
 As a result, for the year, preliminary data show net purchases at $34.9 billion of equities, compared with the previous peak -- $13.1 billion -- in all 1989, David G. Strongin, director, international finance, said in the current Foreign Activity Report (F.A.R.).
 In the 1982-1990 period, U.S. net acquisitions of foreign securities totaled $34.9 billion.
 There wasn't any single factor which caused the burst of foreign investment in 1991, but rather a series of cyclical and secular forces ranging from portfolio diversification by U.S. money managers to foreign equities market prices running behind U.S. market advances, Strongin said.
 U.S. Investors Made Large Purchases
 of Japanese Equities
 About 27 percent of the net purchases in the fourth quarter were in the Japanese equities market, compared to 40 percent in the year.
 U.S. net acquisitions of Japanese equities totaled $2.6 billion in the quarter and about $14 billion in the full year, the latter a record investment in equities of any single nation in any single year, Strongin said. The previous record investment in the equities of a single nation was $5 billion in U.K. equities in 1989.
 The 1991 net purchases of Japanese equities also exceeded 1989's record $13.1 billion net acquisitions of all foreign equities by U.S. investors.
 Simultaneously, many institutional Japanese investors were net divestors of Japanese stocks in 1991.
 Overall, U.S. holdings of foreign equities in 1991 rose to $148.8 billion, up nearly 62 percent from $91.9 billion at year-end 1990, Strongin said. In 1991, U.S. investors increased holdings of domestic equities 24.6 percent, he said.
 -0- 4/1/92/1830
 /CONTACT: Art Samansky or Karen San Antonio of SIA, 212-608-1500/ CO: Securities Industry Association ST: New York IN: FIN SU: ECO


GK-OS -- NY081 -- 3981 04/01/92 15:20 EST
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Date:Apr 1, 1992
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