SEOUL, November 14 (AJP) - Foreign investors extended their months-long buying streak in South Korean equities in October, even as they pulled back from the country’s bond market, according to data released Friday by the Financial Supervisory Service.
Overseas investors purchased a net 4.2 trillion won ($3.1 billion) in Korean stocks last month, marking the sixth straight month of net inflows. The bulk of the buying was concentrated in the benchmark KOSPI market. By the end of October, foreign investors held 1,250 trillion won in Korean equities — about 30.1 percent of total market capitalization.
European investors led the charge, adding a net 4.5 trillion won in equities. Asia-based investors followed with net purchases of 100 billion won. Investors from the Middle East, however, were net sellers, offloading about 600 billion won. By country, Britain and Ireland emerged as the most active buyers, with net purchases of 2.4 trillion won and 1.3 trillion won, respectively. U.S. investors sold a net 1 trillion won, while Kuwait shed 600 billion won.
The upbeat sentiment in stocks contrasted with foreign activity in South Korea’s bond market. Although investors bought 3.8 trillion won in bonds in October, redemptions totaled 4 trillion won, resulting in a net withdrawal of 178 billion won. Foreign holdings of Korean bonds stood at 307 trillion won at month’s end, or 11.2 percent of all outstanding bonds.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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