▲ This file photo taken Sept. 3, 2020, shows a bank official inspecting U.S. dollars before their release at a Seoul branch of Hana Bank. (Yonhap)

stock funds-outflow

Foreigners stay net sellers of S. Korean stocks in June

SEOUL, July 12 (Yonhap) -- Foreign investors remained net sellers of South Korean stocks for the fifth straight month in June amid U.S. monetary tightening and jitters over a global economic slowdown, central bank data showed Tuesday.

Foreigners' stock investment funds recorded a net outflow of US$3.01 billion in June, widening sharply from a $1.29 billion outflow a month earlier, according to the data from the Bank of Korea.

In contrast, foreign investors purchased a net $2.23 billion worth of local bonds last month, up from an inflow of $2.06 billion in May.

Offshore investors thus pulled a net $780 million out of the local securities market last month, a turnaround from a $770 million net inflow in May.

The BOK also said South Korea's currency has been weakening sharply against the U.S. dollar as investors remain spooked by those negatives.

The local currency changed hands at 1,300.40 won against the greenback Friday, compared with 1,237.20 won at the end of May.

The spread on credit default swaps for South Korea's five-year dollar-denominated currency stabilization bonds, or the country's credit default risk, came to 48 basis points in June, up from 44 basis points in May and the highest level in more than four years, it added.

Meanwhile, the daily average foreign exchange trading volume among domestic banks stood at $32.07 billion in the second quarter of the year, up $2.55 billion from three months earlier.

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