BUSINESS

Domestic stock funds draw huge money over past month

By Yonhap
  • Published : Dec 29, 2017 - 09:29
  • Updated : Dec 29, 2017 - 09:29

South Korean domestic stock investment funds have attracted more than 3 trillion won ($2.8 billion) over the past month amid expectations for a market rally in January, a market tracker said Friday.

Equity funds focused on local stocks posted a net money inflow of 3.54 trillion won in the month to Thursday, according to FnGuide.

In particular, domestic equity funds lured as much as 1 trillion won over the past week, it added.

The jump was attributed to hopes for a stock market rally in the new year following a recent bullish run due to profit-taking and investor attempts to avoid capital gains taxes.

(Yonhap)

The benchmark Korea Composite Stock Price Index surged 1.26 percent to 2,467.49 Thursday, the last trading session of 2017, as investors sought undervalued shares amid the rosy outlook over January's market.

Snapping a sluggish run, the tech-heavy secondary market also finished higher, with its key index rising 0.82 percent to 798.42.

Market watchers said South Korea's stock markets will turn bullish at the start of next year as hopes for a January rally outweigh investor appetite for profit-taking.

"Optimism about January's market has gathered strength following the main market's correction focused on large caps," said Kim Hyung-ryeol, an analyst for Kyobo Securities Co. "Both markets will likely get off to a strong start next year thanks to expectations for a solid economy and brisk corporate earnings."

Meanwhile, overseas stock investment funds registered a net money inflow of 750 billion won over the past one-month period.

Domestic bond funds chalked up a net outflow of 1 trillion won amid an unstable debt market stemming from the central bank's interest rate hike in late November, according to FnGuide. (Yonhap)