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Foreigners sell Korean stocks most among emerging markets in Nov.

All Headlines 10:53 December 12, 2019

SEOUL, Dec. 12 (Yonhap) -- Foreign investors sold the largest amount of South Korean stocks among emerging markets in November, as part of their asset rebalancing following a change in a Morgan Stanley stock index, data showed Thursday.

In its latest index rebalancing in early November, global index provider Morgan Stanley Capital International (MSCI) said it will increase the weighting of Chinese A-shares in its emerging market index, which in turn cut South Korea's weighting in the index.

The adjustment of weighting in the index prodded foreign investors to sell South Korean stocks in the Nov. 7-Dec. 5 period, the longest selling streak since January 2013.

Foreigners sell Korean stocks most among emerging markets in Nov. - 1

According to the data compiled by Yuanta Securities Korea Co., foreign investors dumped about US$3 billion worth of South Korean stocks last month, the largest among 10 major emerging markets. Brazil came next with a $2.1 billion sell-off, followed by Indonesia with $493 million. In contrast, foreigners net bought $3.2 billion worth of Indian stocks and $2 billion in Taiwan.

"This year, foreign sell-offs increased in May, August and November, when the MSCI decided to include more Chinese A-shares in its emerging market index," Yuanta Securities Korea analyst Min Byung-kyu said.

The foreign sell-offs of South Korean stocks topped 2.4 trillion won (US$2 billion) in May, 2.3 trillion won in August and 3.2 trillion won in November.


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