SEOUL - Foreign investors have maintained their buying streak in the Korean stock market for the third consecutive month, encouraged by prospects of a recovery in the semiconductor industry.
According to Yonhap News Agency, offshore investors purchased a net US$2.51 billion worth of local stocks in January, following acquisitions worth $2.52 billion and $2.64 billion in the preceding two months.
The BOK noted that the continued interest from foreign investors comes amidst optimistic forecasts for the chipmaking sector, despite concerns over delayed monetary tightening in major economies. The report marks a significant shift from the previous years, with foreign investors having bought a net $8.16 billion worth of local stocks last year, a notable reversal from the sell-off of $6.09 billion in 2022 and $17.44 billion in 2021.
Additionally, the report highlighted movements in the bond market, where foreigners sold a net $1.89 billion worth of local bonds in January. Meanwhile, the premium on credit default swaps (CDS) for South Korea's five-year dollar-denominated currency stabilization bonds saw a slight increase, indicating a change in credit risk perception among investors.