foreigners-stock trading

Foreigners snap 3-month selling spree in November on improved sentiment

SEOUL, Dec. 12 (Yonhap) -- Foreign investors ended their third straight month of stock selling in November due to outlook for a recovery in the chipmaking sector and improved sentiment, central bank data showed Tuesday.

Offshore investors bought a net US$2.64 billion worth of local stocks last month, shifting from $2.22 billion, $1.33 billion and $910 million worth of selling, respectively, in October, September and August, according to the data from the Bank of Korea (BOK).

The November stock purchases mark the largest since January this year, when the comparable figure was $4.95 billion, the data showed.

The central bank said foreigners' net stock purchases came amid improved market sentiment and outlook for a rebound in the chipmaking sector.

Foreigners also bought a net $1.86 billion worth of local bonds last month, compared with net selling of $580 million a month earlier.

Their combined selling of local stocks and bonds last month marked the largest since April last year, when the comparable figure was $3.78 billion.

Meanwhile, the premium on credit default swaps (CDS) for South Korea's five-year dollar-denominated currency stabilization bonds amounted to 40 basis points in October, up from 32 basis points the previous month. A basis point is 0.01 percentage point.

The CDS premium reflects the cost of hedging credit risks on corporate or sovereign debt. A rise implies a drop in the credit spreads of sovereign bonds and higher borrowing costs.

(END)

[ⓒ K-VIBE. 무단전재-재배포 금지]