Foreigners purchase south Korean stocks for 3 months

Foreign investors purchased South Korean stocks for three months in a row, financial watchdog data showed on Monday.

Foreign net buying of local stocks reached 1.85 trillion won (1.64 billion U.S. dollars) in August, keeping a buying trend for three months since June, according to the Financial Supervisory Service (FSS).

Offshore investors held local stocks worth 467.6 trillion won as of the end of August, accounting for 30.5 percent of the total market capitalization. It was the first time in 15 months that foreign ownership percentage topped 30 percent.

European and U.S. investors bought local shares worth 1.3 trillion won and 0.8 trillion won each last month, but Asian investors sold a net 0.2 trillion won worth of domestic shares.

In the local bond market, foreign net investment reduced 0.9 trillion won in August. The net investment gauges net buying minus maturing debts.

Foreigners bought a net 1.2 trillion won worth of local bonds, but maturing debts reached 2.1 trillion won last month.

As of end-August, foreign ownership of local bonds reached 95.88 trillion won, taking up 5.9 percent of the total issuance.

Source : XINHUA