Foreigners ditch sluggish Korean stocks
Foreign investors dumped more than 6 trillion won ($4.44 billion) worth of shares listed on Kospi, Korea’s main bourse, in the past three months amid the slow stock market, data from the Korea Exchange showed Sunday.
Non-Korean investors’ net buying on Kospi this year dropped to 7.23 trillion won on Friday after reaching the peak at 14.06 trillion won on June 16. The offloaded shares in the past three months -- worth 6.73 trillion won -- mean foreigners have sold nearly half of their purchases made earlier this year.
Overseas investors have been on a selling streak for the 11th consecutive trading day, from Sept. 18 to Friday, the longest period seen in a year since September 2022. If the selling move continues Tuesday, the first trading day after the Hangeul Day holiday, it will be the longest streak in 16 years.
Top sold shares for foreign investors were secondary battery-related stocks as the investment boom led by retail investors eased out, including Posco Holdings (5.38 trillion won), LG Chem (1.45 trillion won), LG Energy Solution (942 billion won), Samsung SDI (720 billion won), SK Innovation (287 billon won) and Posco Future M (281 billion won).
The massive sell-offs come on the back of US Treasury yields hitting a decades-high. The mounting expectations on the US Federal Reserve continuing its aggressive monetary tightening policy have lead to an outflow of foreign funds.
With foreign investors leaving the market and a weaker investment sentiment, the local stock market has been sluggish. Kospi, which had stayed in the 2,500-2,600 box in the second half of this year, closed at 2,408.73 points on Friday, unable to recover to the 2,500-point range since Sept. 25.
This contrasts to foreign investors' massive buying spree in the first half of this year, net buying shares worth 12.31 trillion won in the first six months of 2023.
Though the selling splurge threatens the local stock market, market watchers expect overseas investors to return to Korean stocks in the near future as recent economic indicators are likely to signal a recovery.
The US' Consumer Price Index for September on Thursday is expected to show the first decline in the year-over-year rate in three months, which could indicate a retreat of inflation.
“Foreign investors are the second largest entity on the local stock market, following retail investors. They are a key player that leads the Kospi market," analyst Kang Jin-hyeok from Eugene Investment & Securities assessed.
“Considering the recent slowdown in the US economy and stabilization efforts from the Bank of Korea, an inflow of foreign investment is likely to happen in the fourth quarter or next year when Korea’s exports recover,” Kang explained.
(责任编辑:재무)
- [Today’s K
- Yoon pushes for Xi’s visit to firm up ties with China
- Opposition head pleads for support in ‘fight against Yoon dictatorship’
- Seoul shares close lower amid woes over Fed's drawn
- Hyundai’s ‘Uni Wheel’ system gives more room for different car designs
- "가리비 8m 천장까지 쌓였다"…단 한달만에 日 타격 입힌 中
- [Weekender] Behind the scenes of Korean food crazes
- S. Korean firms urge US to clarify 'foreign entity of concern'
- LS Materials to tap deeper into EV, green energy markets
- Allies vow stern measures against Russia
- [Herald Interview] ‘Another Body,’ a riveting documentary on devasting effects of deepfake porn
- Apple to launch iPhone15 series in S. Korea on Oct. 13
- HiteJinro soju seeks bigger footing in UK
- Ministry uncovers 1,802 Youth Protection Act violations
- Hyundai Motor bolsters global partnerships through Expo campaign
- Ministry uncovers 1,802 Youth Protection Act violations
- Outpaced by Coupang, Shinsegae carries out major leadership reshuffle
- [Test Drive] Toyota’s minivan Alphard boasts sedanlike drive
- HiteJinro soju seeks bigger footing in UK
- [Herald Interview] ‘Another Body,’ a riveting documentary on devasting effects of deepfake porn
- [Herald Review] Lim Hyunsik takes fans for a musical dive into ocean views+
- 北, 러 주최 국제포럼서 '국제수송' 논의…무기거래 우회로 찾나 views+
- Over 90% of fines for illegal short selling imposed on foreign firms views+
- Unwind with Korea food, lifestyle docs on Netflix views+
- New book sheds light on ongoing debate and legacy of comfort women issues views+
- [New on scene] Hong Xa views+
- Seoul to implement alert system to manage overcrowded areas views+
- S. Korea, UAE strike bilateral free trade agreement views+
- Choo calls for end to protectionism, supply chain recovery during G20 meeting views+
- SK to hold CEO meeting in Paris views+