foreigners-stock trading
Foreigners sell Korean stocks for 3rd month in October amid geopolitical woes
SEOUL, Nov. 10 (Yonhap) -- Foreign investors sold South Korean stocks for a third straight month in October amid risk aversion that stemmed from the Israel-Hamas conflicts, central bank data showed Friday.
Offshore investors sold a net US$2.22 billion worth of local stocks last month, following net selling of $1.33 billion and $910 million, respectively, in September and August, according to the data from the Bank of Korea (BOK).
The central bank said foreigners' net stock selling came amid growing woes over the escalating Israel-Hamas conflicts.
Foreigners also sold a net $580 million worth of local bonds last month, compared with net selling of $100 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.
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