Foreigners remain net sellers of S. Korean stocks, bonds in April

▲ The headquarters of the Bank of Korea in central Seoul (Yonhap)

foreigners-stock trading

Foreigners remain net sellers of S. Korean stocks, bonds in April

SEOUL, May 15 (Yonhap) -- Foreign investors remained net sellers of South Korean stocks and bonds for the third consecutive month in April, the central bank data showed Friday, although the outflow volume narrowed amid signs of a possible resolution to the Middle East war.

Offshore investors sold a net US$2.13 billion worth of local stocks and bonds last month, following net sales of $36.5 billion in March, according to data from the Bank of Korea (BOK).

Foreign investors sold a net $7.76 billion in February, following net purchases of $2.39 billion in January.

In detail, foreign investors sold a net $2.68 billion worth of stocks in April while purchasing a net $550 million worth of bonds.

"The stock market experienced an outflow for four straight months as investors closely monitored geopolitical risks in the Middle East," a central bank official said.

"But the overall volume of net selling narrowed significantly following a ceasefire agreement between the U.S. and Iran, which led to a recovery in investor sentiment to some extent," the official added.

The official noted South Korea's entry into the World Government Bond Index (WGBI), a key global bond benchmark run by FTSE Russell, also led to net inflows into the bond market.

South Korea began a phased eight-month entry into the index in April. The WGBI tracks sovereign debt from more than 20 major economies, including the United States, Japan and China.

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