SEOUL– Foreign investors remained net sellers of South Korean stocks for the third straight month in July as they locked in profits amid a bull run in the stock market, central bank data showed Thursday.
Foreigners sold a net US$3.06 billion last month, compared with net selling of $440 million the previous month, according to the Bank of Korea (BOK).
The BOK said a net outflow of stock funds grew in July from May as the spread of the delta variant weighed on a global economic recovery.
Offshore investors, however, were net buyers of Korean bonds worth $5.57 billion in July.
Meanwhile, volatility in South Korea’s currency rose in July from the previous month, the BOK said.
The daily fluctuation of the dollar-won exchange rate came to an average of 4.3 won last month, up from 3.5 won a month earlier.
Situations for the country’s foreign currency borrowing remained sound as the spread charged on local banks’ short-term overseas borrowing stayed low.
The spread on credit default swaps for South Korea’s five-year dollar-denominated currency stabilization bonds came in at 18 basis points in June, unchanged from a month ago.
Source: Yonhap News Agency