Net Buying of Stocks, Bonds by Foreign Investors Tops 67 Tln Won This Year

By Park Sae-jin Posted : September 19, 2010, 14:26 Updated : September 19, 2010, 14:26
Foreign investors have bought 67.8 trillion won (US$58.4 billion) more in local stocks and bonds than they sold coming into this year, amid a faster-than-expected recovery of the South Korean economy, financial sources said Sunday.

The findings by the Korea Exchange (KRX) and Korea Financial Investment Association showed foreign investors buying up a little less than 56.3 trillion won worth in locally issued bonds coming into this year.

The report, based on all transactions carried out up till Friday, also showed a net 11.5 trillion won worth of South Korean stocks being purchased by overseas investors.

"The influx is due to the South Korean economy doing better than many advanced industrialized economies such as the United States and having a stable market," a local analyst said.

Others said that concerns the U.S. economy may experience a dip in growth are causing many investors to turn to the Asian markets, which could help South Korea in the near future.

The report, meanwhile, said that while there were some ups and downs in buying by foreign investors, net purchases of bonds has already exceeded the total for the whole of last year, which came to 52.4 trillion won.

Net buying of stocks, however, is shy of the 32.2 trillion won total by overseas investors. Last year's number for South Korean shares represented an all-time high since the bourse fully opened in 1998.

[English News Team]
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