Foreigners continue net purchases of stocks in S. Korea for 3rd January

An electronic board in the trading floor of Hana Bank in Seoul on February 9, 2022 shows that the benchmark Korea Composite Stock Price Index (KOSPI) gained 22.38 points, or 0.81 percent, to close at 2,768.85. South Korean stocks closed higher for a second straight day on hopes of strong corporate earnings. (Yonhap)

SEOUL, 10 Feb. (Korea Bizwire)Foreign investors continued to buy more stocks than they sold on South Korean stock markets for the third consecutive month in January, central bank data showed Thursday.

Foreigners bought $1.81 billion net worth of local stocks last month, according to data provided by the Bank of Korea.

The amount, however, was halved from their net purchases in December of $3.69 billion, according to the data.

Net purchases of equities by foreigners took place here despite the heightened trend of risk aversion amid expectations that the United States and other major countries will tighten monetary policies.

Foreigners’ investment in local stock markets was driven in part by their keen attention to the biggest-ever initial public offering (IPO) by battery maker LG Energy Solution in January.

Local IPOs, including that of LG Energy Solution, attracted $3.23 billion from overseas investors last month, marking a new monthly high that surpassed the previous high of $2.3 billion. dollars established in August, according to the data.

Foreigners also bought $3.16 billion net of local bonds in January, the 13th consecutive month of their net purchases in the fixed income market. It was still lower than the previous month’s $4.85 billion.

Their total net purchases of local securities — stocks and bonds — came to $4.97 billion in January, though the amount was well below the $8.54 billion recorded a month earlier, the data showed.

(Yonhap)


Ann J. Cox