SEOUL– Foreign investors remained net sellers of South Korean stocks for the fourth straight month in August as they locked in profits, central bank data showed Friday.
Foreigners sold a net US$4.45 billion last month, compared with net selling of $3.06 billion the previous month, according to the Bank of Korea (BOK).
The BOK said a net outflow of stock funds grew in August as the spread of the delta variant weighed on a global economic recovery.
Offshore investors, however, were net buyers of Korean bonds worth $1.56 billion in August.
Meanwhile, volatility in South Korea’s currency slightly rose in August from the previous month, the BOK said.
The daily fluctuation of the dollar-won exchange rate came to an average of 4.5 won last month, up from 4.3 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 August, unchanged from a month ago.
Source: Yonhap News Agency