Foreign sell-off extends to 15th session amid virus woes

SEOUL, March 25 (Yonhap) -- Foreign investors continued to sell local stocks for a 15th consecutive session, with the new coronavirus still taking hold of the global economy, data showed Wednesday.

Offshore investors offloaded a net 332.8 billion won (US$270.6 million) worth of local stocks on Wednesday.

Since March 5, foreigners have net sold a total of 10.2 trillion won in stocks. They sold a net 1.31 trillion won on March 9, marking the biggest daily selling.

The COVID-19 pandemic has worsened investor concerns over prolonged economic fallout, spurring the exodus of foreign money from the local bourse.

Foreigners' weekslong sell-off was countered by retail investors' net buying, which pulled up the South Korean benchmark index, the KOSPI, by 5.89 percent to close at 1,704.76.

Foreigners' sell-off volume has declined from last week, followed by stimulus measures around the globe to minimize the economic fallout from the coronavirus pandemic.

The U.S. revealed unlimited amounts of bond purchases to shore up the faltering markets, in addition to zero-range rate cuts and major Treasury purchase programs.

On Tuesday, South Korea unveiled an emergency aid package worth 42 trillion won to help ease the credit crunch and stabilize financial markets hit hard by the spread of the new coronavirus.

On top of that, policy lenders will provide 58.3 trillion won to help smaller shops and smaller companies hit hard by the virus. Big South Korean companies could also receive the financial support, if necessary, according to the Financial Services Commission.

jwc@yna.co.kr
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