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THE INVESTOR
November 21, 2018
Big Reunion

Finance

Foreigners remain net sellers in S. Korean bond market in Oct.

  • PUBLISHED :November 04, 2018 - 11:09
  • UPDATED :November 04, 2018 - 11:09
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[THE INVESTOR] Foreign investors remained net sellers in the South Korean bond market for two straight months last month, but the amount sold decreased, financial data showed on Nov. 4.

Foreigners offloaded a net 244 billion won (US$218.2 million) worth of South Korean debts last month, continuing their selling mode from September, when they dumped a net 2.22 trillion won, according to the data.

It was the first time in 2018 that net foreign holdings of South Korean bonds decreased two months in a row. Offshore investors had been net buyers since January.



But analysts noted that the inflow of foreign investment to the bond market continue to rise, although the amount was offset by massive foreign selling driven by foreign-owned Treasurys reaching maturity in September and October.

Foreigners bought 3.62 trillion won worth of local bonds in October, but they repaid 3.86 trillion won worth at the same time.

“It seems foreigners remained net sellers in September and October, but they are stilling buying Korean bonds en masse,” Daishin Securities analyst Kong Dong-rak said.

Led by a foreign selling spree, the South Korean financial market has experienced volatility in recent weeks amid a global stock rout.

The benchmark Korea Composite Stock Price Index nose-dived 14.8 percent in October alone, and the secondary index for the tech-laden KOSDAQ market plummeted 23.4 percent.

By Park Ga-young and newswires (gypark@heraldcorp.com)

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