Foreign investors shift to net selling of Korean stocks in January: BOK

Foreign investors turned into net sellers of Korean equities in January, driven by profit-taking following recent gains in the benchmark index, central bank data showed Thursday. Offshore investors sold a net $50 million worth of local stocks last month, reversing from their net purchase of $1.19 billion in December, according to the data from the Bank of Korea (BOK). Foreign investors, meanwhile, bought $2.44 billion worth of bonds in January, resulting in a combined net inflow of $2.39 billion in local securities, marking the fifth consecutive month of net foreign inflows into domestic securities. “Equity funds posted a net outflow as profit-taking following recent gains in domestic stock prices outweighed expectations of better performances of the semiconductor industry,” a BOK official said. “Bond funds saw slower net inflows as investor sentiment weakened amid rising market interest rates.” The benchmark Korea Composite Stock Price Index (KOSPI) jumped more than 22 percent in January. The central bank also said daily volatility in the won-dollar exchange rate rose to an average of 6.

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