Institutions' foreign securities holdings down in Q3

foreign securities-Q3 tally

Institutions' foreign securities holdings down in Q3

SEOUL, Dec. 1 (Yonhap) -- South Korean institutions' investment in foreign securities fell in the third quarter of the year due to a slump in the value of overseas stocks, bonds and a rise in interest rates in major markets, central bank data showed Friday.

The outstanding value of foreign securities held by local institutional investors stood at US$367.55 billion as of end-September, down $5.9 billion from three months earlier, according to the data from the Bank of Korea (BOK).

The on-quarter decline is attributed to a drop in the value of foreign stocks and bonds held by them and a rise in market rates in major markets.

Foreign securities include stocks, bonds and "Korean paper," which refers to foreign currency-denominated securities issued by the South Korean government, banks and companies in overseas markets.

Local institutions' investment in foreign stocks dropped $1.54 billion on-quarter in the third quarter, while the value of their foreign bond holdings contracted $3.28 billion, the data showed.

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