Foreign Selling of Korean Stocks Extends to Fourth Month, Falls to $2.93 Billion

Foreign investors were net sellers of 4.046 trillion won ($2.93 billion) worth of South Korean listed stocks in April. The selling streak stretched to a fourth straight month, but the scale fell sharply from net selling of more than 43 trillion won a month earlier.

Data released by the Financial Supervisory Service on May 29 showed foreigners sold a net 3.638 trillion won ($2.63 billion) of shares on the Kospi market last month. Net selling on the Kosdaq market totaled 408 billion won ($296 million).

Foreign holdings of locally listed shares stood at 2,121.4 trillion won ($1.54 trillion) at the end of April, accounting for 32.5% of total market capitalization. The value of those holdings increased by 545.2 trillion won ($395 billion) from a month earlier as share prices rose on stocks they continued to hold.

By region, Middle Eastern investors were net buyers of 200 billion won ($145 million) of local stocks. Investors from Asia were net sellers of 1.8 trillion won ($1.30 billion), while investors from the Americas sold a net 1.6 trillion won ($1.16 billion) and European investors sold 200 billion won ($145 million).

By country, Norwegian investors were net buyers of 1.7 trillion won ($1.23 billion), while investors from Luxembourg bought a net 1.6 trillion won ($1.16 billion). Singapore investors sold a net 3.4 trillion won ($2.46 billion), and U.K. investors sold a net 2.5 trillion won ($1.81 billion).

In the bond market, foreign investors turned net buyers after one month. They bought a net 8.089 trillion won ($5.86 billion) of listed bonds in April. Bond redemptions totaled 7.647 trillion won ($5.54 billion), leaving net investment at 442 billion won ($320 million).

By region, European investors made net bond investments of 2 trillion won ($1.45 billion), while investors from the Americas made net investments of 700 billion won ($507 million). Middle Eastern investors posted net withdrawals of 800 billion won ($580 million), and Asian investors withdrew a net 100 billion won ($72 million).

By bond type, foreign investors made net investments of 4.7 trillion won ($3.41 billion) in government bonds. They posted net withdrawals of 1.4 trillion won ($1.01 billion) from Monetary Stabilization Bonds.

Foreign holdings of listed bonds stood at 325.2 trillion won ($236 billion) at the end of April, up 1.4 trillion won ($1.01 billion) from a month earlier. Those holdings accounted for 11.6% of outstanding listed bonds.

Han Gyeong-woo, Hankyung.com reporter, case@hankyung.com