foreigners-stock trading

Foreigners buy Korean stocks for 2nd month in December on improved sentiment

SEOUL, Jan. 10 (Yonhap) -- Foreign investors scooped up Korean stocks in December for a second straight month on the back of eased woes over tightening monetary policies and hope for a recovery in the chipmaking sector, central bank data showed Wednesday.

Offshore investors bought a net US$2.52 billion worth of local stocks last month, following $2.64 billion worth of purchases the previous month, according to the data from the Bank of Korea (BOK).

The central bank said foreigners' net stock purchases came amid eased woes over the end of restrictive monetary stances in major economies and outlook for a rebound in the chipmaking sector.

Last year, foreign investors bought a net $8.16 billion worth of local stocks, a turnaround from selling of $6.09 billion in 2022 and $17.44 billion in 2021, the central bank data showed.

Foreigners sold a net $790 million worth of local bonds last month, compared with net buying of $1.86 billion a month earlier.

Meanwhile, the premium on credit default swaps (CDS) for South Korea's five-year dollar-denominated currency stabilization bonds amounted to 27 basis points in December, down from 37 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.

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