Germany's capital account deficit widened sharply to E13.5 billion in Novemberfrom E7.9 billion in October (revised from a E8.4 billion shortfall), the Bundesbankreported Friday. The deficit in November was due to net outflows in direct and -- especially --portfolio investment, which not only far outweighed net credit inflows that monthbut were also much higher than the net outflow registered by investment activity inOctober. Financial derivatives also saw a modest net outflow in November. As to portfolio investments, total securities transactions resulted in a net capitaloutflow of E17.8 billion in November, almost three times as large as the net outflowof E6.1 billion in October. This development was mainly caused by a rise inGerman investment activity abroad, according to the Bundesbank. German investors bought a net E17.5 billion in foreign securities in November,up from net purchases of E13.6 billion in October. Foreign stocks (net purchases ofE6.0 billion), bonds (net E7.4 billion) and investment certificates (net E3.2 billion)accounted for the bulk of German portfolio investment abroad in November. Foreign investors, on the other hand, sold a net E0.3 billion in Germansecurities in November, after buying a net E7.5 billion the month before.Foreigners bought a net E5.0 billion in German stocks and a net E2.3 billion inGerman bonds in the reporting month, but this combined total of E7.3 billion wasoutweighed by E8.0 billion in net sales of German money market paper, the Bundesbank reported. Direct investments saw a rise in net outflows to E5.2 billion in November fromE4.6 billion in October, the Bundesbank said. Foreign direct investment in Germany rose by a net E1.6 billion in November,up from a gain of E0.5 billion in October. However, the latest increase was morethan offset by "strong" German net direct investment abroad to the tune of E6.8billion in the reporting month, which was up from net outflows of E5.1 billion before,the Bundesbank said. Credit activities brought net inflows of E10.2 billion in November, up from netinflows of E3.7 billion the month before. Other capital flows saw virtually no net change in November, after a net surplusof E0.1 billion in October.