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Foreign flight from Korean securities market wanes in Nov.

Foreign investors’ flight from the Korean securities market eased by the end of November, followed by signs of relief in stock performances, monthly data showed Monday.

Foreign investors net purchased Korean stocks and bonds worth 447 billion won ($397.2 million) throughout November, ending a losing streak of two consecutive months, according to the latest data compiled by the Financial Supervisory Service. They net sold securities worth 1.3 trillion won in September and 4.9 trillion won in October.

(Herald DB)
(Herald DB)
Net stock sales by foreign investors in November came to 36 billion won, a significant drop from that of October at 4.6 trillion won,

As of end-November, foreign investors cumulatively owned shares worth a combined 532.9 trillion won, accounting for 31.6 percent of the total value of listed stocks in Korea.

In October, heightened stock market volatility due to a lingering global trade war and doubts about tech stock valuations in the US triggered heavy net selling in Korean stocks. Solely in October, the top-tier benchmark Kospi fell 13.4 percent, while the second-tier Kosdaq shed 21.1 percent

The market took a breather in November amid signs of relief from external uncertainties, including a US-China trade pact. The Kospi rose 3.3 percent monthly, while the Kosdaq jumped 7.3 percent.

By country, Singaporean investors and Norwegian investors were top net stock buyers, with net purchases of 370 billion won and 334 billion won, respectively. Investors from the United States net sold 593 billion won in stocks, while those from Luxembourg net sold shares worth 393 billion won, taking the top net seller spots.

Net bond purchases by foreign investors reached 483 billion won, a turnaround compared to net sales of bonds in October worth 274 billion won. Cumulative bond holdings of foreign investors came to 112.2 trillion won, taking up 6.5 percent of total listed bonds.

By bond type, foreign investors net sold 631 billion won worth of Korean Treasury bonds, while net buying agency bonds -- issued by state-affiliated enterprises -- worth 1.1 trillion won.

By Son Ji-hyoung