foreigners-August stock trading
Foreigners turn net sellers of Korean stocks in August
SEOUL, Sept. 12 (Yonhap) -- Foreign investors turned net sellers of South Korean stocks in August amid woes over a slowdown in the Chinese economy, central bank data showed Tuesday.
Offshore investors sold a net US$910 million worth of local stocks last month, a turnaround from net buying of $440 million a month earlier, according to the data from the Bank of Korea (BOK).
The central bank said foreigners' net stock selling was driven by growing woes over a slowdown in the Chinese economy, the world's second-largest economy.
Foreigners also sold a net $790 million worth of local bonds, compared with net buying of $600 million a month earlier.
Foreign investors offloaded a net $1.7 billion worth of local stocks and bonds last month, the largest since December 2022, when the comparable figure was $2.42 billion, the data showed.
Meanwhile, the premium on credit default swaps (CDS) for South Korea's five-year dollar-denominated currency stabilization bonds amounted to 31 basis points in August, unchanged from 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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