Foreigners turn net buyers of S. Korean stocks in October

SEOUL, Nov. 12 (Yonhap) -- Foreign investors turned net buyers of South Korean equities in October, driven by hopes of a global economic recovery from the coronavirus pandemic, the central bank said Thursday.

Foreigners bought a net US$1.38 billion worth of local stocks last month, compared with a net sale of $2.09 billion in September, according to the Bank of Korea (BOK).

Offshore investors became net sellers of Korean bonds worth $230 million last month, it said.

Meanwhile, volatility in South Korea's currency edged down in October from the previous month, the central bank said.

The daily fluctuation of the dollar-won exchange rate came to an average of 3.4 won last month, down from 3.5 won a month earlier.

The Korean won appreciated 4.9 percent against the U.S. dollar in October compared with September.

Situations for the country's foreign currency borrowing remained sound as the spread charged on local banks' short-term, as well as mid- and long-term, overseas borrowing declined, the BOK said.

The spread on credit default swaps for South Korea's five-year dollar-denominated currency stabilization bonds came in at 25 basis points in October, slightly up from 24 basis points a month earlier.

kdh@yna.co.kr
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