Foreigners’ sell-offs of Korean equities continue in November

11-Dec-2019 Intellasia | Yonhap | 6:02 AM Print This Post

Foreign investors continued to net sell both South Korean stocks and bonds in November, reducing their stake here by the largest margin in over a year, central bank data showed Tuesday.

Foreigners net sold a combined total of $3.96 billion of local stocks and bonds in the month, the largest amount since October 2018, when they dumped $4.27 billion worth of local shares and bonds, according to the data from the Bank of Korea (BOK).

They sold a net $2.44 billion worth of local stocks last month, extending their net selling for a fourth consecutive month. The amount also marks the highest since June when they offloaded a net $2.58 billion.

“The outflow of foreign investment in local securities expanded on growing concerns of an economic slowdown and resurfacing of uncertainties over the US-China trade negotiations,” the BOK said in a press release.

The central bank slashed its 2019 growth outlook for South Korea to 2 percent in its latest and final projection released late last month, which also marked the third downward revision of the year from 2.7 percent late last year to 2.6 percent in January, 2.5 percent in April and 2.2 percent in July.

Foreign investors remained net sellers of local stocks for 21 consecutive sessions between November 7 and December 5, the longest selling streak since January 2013.

They also dumped $1.52 billion worth of local bonds in November, the highest amount since September 2018, when they net sold $1.98 billion.

Meanwhile, the average daily variation of the won-dollar exchange rate slightly narrowed to 3.6 won in November from 3.9 won the previous month, with the average fluctuation rate also narrowing to 0.31 percent from 0.33 percent over the cited period.

The daily average foreign exchange turnover between banks came to $25.75 billion in the month, down $180 million from a month earlier. (Yonhap)


Category: Korea

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