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THE INVESTOR
April 25, 2019
Big Reunion

Finance

Stock funds see massive outflow amid market rally

  • PUBLISHED :February 11, 2019 - 11:17
  • UPDATED :February 11, 2019 - 11:17
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Funds invested in Korean stocks dropped sharply last month as investors moved to lock in profits from the market’s bull run, data showed on Feb. 11.

The net capital outflow reached a massive 630.3 billion won (US$482 million) in January, the highest number since October 2017 when the corresponding figure stood at 786 billion won, according to the data compiled by the Korea Financial Investment Association (KOFIA).


The move came as the country’s key index jumped 8.03 percent in January, fueled by strong foreign buying. Stock fund redemption generally increases when the market is in a bullish mode.

“The outflow from the stock funds can also be attributable to investors‘ growing preference for other financial vehicles, particularly to exchange-traded funds,“ said Kim Hoo-jeong, an expert at Yuanta Securities.

Over the past month, ETFs enjoyed a capital inflow of more than 1.3 trillion won, according to market tracker FnGuide.

By Ram Garikipati and newswires (ram@heraldcorp.com)

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