Foreigners remain sellers of S. Korean stocks for 2nd month in June

SEOUL, July 14 (Yonhap) -- Foreign investors remained net sellers of South Korean stocks for the second straight month in June as they locked in profits amid a bull run in the stock market, central bank data showed Wednesday.

Foreigners sold a net US$440 million last month, compared with net selling of $8.23 billion the previous month, according to the Bank of Korea (BOK).

The BOK said a net outflow of stock funds declined in June from May as concerns about U.S. inflation risks and rising U.S. long-term interest rates eased.

Offshore investors, however, were net buyers of Korean bonds worth $8.76 billion in June.

Foreign investors thus bought a net $8.32 billion worth of Korean stocks and bonds last month, a turnaround from net sales of $3.64 billion the previous month.

Meanwhile, volatility in South Korea's currency fell in June from the previous month, the BOK said.

The daily fluctuation of the dollar-won exchange rate came to an average of 3.5 won last month, down from 4.2 won a month earlier.

Situations for the country's foreign currency borrowing remained sound as the spread charged on local banks' short-term overseas borrowing stayed low.

The spread on credit default swaps for South Korea's five-year dollar-denominated currency stabilization bonds came in at 18 basis points in June, down from 19 a month ago.

sooyeon@yna.co.kr
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