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Foreigners maintain net-selling mode in S. Korea's stock, bond markets: BOK

All Headlines 12:00 November 09, 2018

SEOUL, Nov. 9 (Yonhap) -- Foreign investors were net sellers both in the South Korean stock and bond markets in October amid a worldwide stock rout, the central bank said Friday.

Foreigners offloaded a net US$4.03 billion worth of South Korean shares last month, ending their three-month buying mode, according to the Bank of Korea (BOK).

It is the largest monthly net selling in the stock market since June 2013, when foreign selloffs hit $4.63 billion.

Meanwhile, they also dumped a net $230 million in the local bond market in October, extending their selling streak to two straight months.

But the amount of selling dropped from the $1.98 billion tallied in the previous month.

In total, foreigners reduced their equity holdings by a net $4.27 billion in the South Korean financial market in October, marking the largest monthly figure since September last year.

With the financial jitters throughout the world, the South Korean financial market has experienced volatility in recent weeks, led by the selling spree of overseas investors.

The benchmark Korea Composite Stock Price Index nose-dived 14.8 percent in October alone, and the secondary index for the tech-laden KOSDAQ market plummeted 23.4 percent.

At the same time, the average daily variation of the won-dollar rate, which shows the change from the previous session's closing price, came to 4.8 won in October, up from 4.0 won in the previous month.

Session-over-session changes in the dollar-won exchange rate also widened to an average 0.43 percent last month from 0.36 percent a month earlier, the BOK said.

The won finished at 1,123.3 won against the greenback Wednesday, compared with 1,139.6 won at the end of October, the BOK said.

The credit default swaps premium for foreign exchange stabilization bonds was 39 basis points in October.

Foreigners maintain net-selling mode in S. Korea's stock, bond markets: BOK - 1


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