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Foreigners turn to selling S. Korean stocks in Aug.

Finance 12:00 September 10, 2019

SEOUL, Sept. 10 (Yonhap) -- Foreign investors offloaded nearly US$2 billion worth of South Korean stocks last month, central bank data showed Tuesday, amid a steady decline in the country's exports caused by a trade dispute between the world's two largest economies and also importers of South Korean goods.

Foreigners dumped a net US$1.95 billion worth of local shares in August, turning around from a net purchase of $1.74 billion the month before and becoming net sellers for the first time in three months, according to the data from the Bank of Korea (BOK).

Foreigners turn to selling S. Korean stocks in Aug. - 1

"Stock investment funds exited the local market as investor sentiment worsened due to the escalation of the U.S.-China trade dispute and concerns of a slowing global economy," the BOK said.

South Korea's exports have dipped for nine consecutive months since December, plunging 13.6 percent on-year in August.

Foreigners still purchased a net $1.43 billion worth of local bonds in the month, a turnaround from a net selling of $310 million in July.

The volatility in the foreign exchange market expanded from a month earlier in August, with the daily average range of fluctuation in the won-dollar exchange rate climbing to 4.9 won from 3.4 won over the cited period, according to the BOK.

The daily turnover of foreign exchanges between banks came to $26.81 billion in August, up $2.54 billion from a month earlier.

bdk@yna.co.kr
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