Foreigners ditch sluggish Korean stocks
简介Foreign investors dumped more than 6 trillion won ($4.44 billion) worth of shares listed on Kospi, K ...
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.
A 66-year-old taxi driver whose passenger jumped out of his moving taxi and was then killed after be ...
This year’s Benois de la Danse winner, Kang Mi-sun, is set to perform the classic ballet “Don Quixot ...
Dondeokjeon, a historic Western-style building in Seoul's Deoksu Palace used as a royal guestho ...
BTS gets 6th top honor at 2023 MAMA Awards
Political strife may delay Korea’s launch of new space agency
[Feature] The rise and fall of terrestrial TV dramas
Govt. to survey spending on private education of preschoolers, Suneung retakers
Trilateral cooperation unaffected by US election outcomes: Goldberg
SKC to build bioplastics plant in Vietnam
- Posco International completes EV parts plant in Mexico
- Geonwonneung to open for public viewing in fall
- 2023 Melon Music Awards to take place Dec. 2
- Hyundai, Kia team up with Infineon on EV power chips
- 北 방문 러 외무장관, 김정은과 만났다…"1시간 이상 대화"
- 북러 무기거래 현장 지목된 라진항…"컨테이너 더미 또 쌓였다"
- Registration opens for offshore firms' FX trading
- [Herald Interview] Park Youn
- 이종석, 검수완박법엔 입법취소 의견…공수처법 위헌 입장
- Mirae Asset Securities to buy back shares worth W60b
- 2m Koreans opt out of life
- "가리비 8m 천장까지 쌓였다"…단 한달만에 日 타격 입힌 中
- [Test Drive] Toyota’s minivan Alphard boasts sedanlike drive
- Opposition head pleads for support in ‘fight against Yoon dictatorship’
- Golden apples: Why fruit prices are national issue in early autumn
- [Korea Beyond Korea] Early Korean history remains virtually unknown abroad
- Allies vow stern measures against Russia
- PM departs for China for Asian Games, meeting with Xi
- From traditional to trendy, three of Seoul's top yukhoe spots
- [Herald Interview] ‘Another Body,’ a riveting documentary on devasting effects of deepfake porn
- Xi says he will consider S. Korea visit
- Korea’s parental leave benefits lag behind OECD average
- S. Korean firms urge US to clarify 'foreign entity of concern'
- Surveillance cameras to be a must in hospital operating rooms
- Koreans prefer cash in Chuseok gifting for parents
- Opposition party leader ends 24
- BTS' Suga begins military service
- [New in Korean] Ancient Korean mummy unearthed in Irish peatland
- US finalizes national security 'guardrails' for CHIPS funding
- PM to meet with Xi on sidelines of Asian Games in Hangzhou