Seoul: Foreign investors continued their selling binge of Korean stocks in May with their sell-offs hitting a record monthly high, data showed Monday. Offshore investors offloaded a net US$31.83 billion worth of local stocks last month, following a $2.68 billion sell-off in April.
According to Yonhap News Agency, the massive selling spree was driven by investors unloading chipmakers and other market heavyweights to cash in their gains after an extended rally. In the first five months of the year, foreign selling reached $77.83 billion, as reported by the central bank data.
In contrast to the stock market, the bond market witnessed a different trend. Foreign investors bought $5.68 billion worth of bonds in May, a significant increase from the $0.55 billion worth of bonds purchased a month earlier.
When considering both stocks and bonds, foreigners sold a net $26.15 billion worth of local securities last month, which marked an increase from a net selling of $21.3 billion in April. This shift highlights the contrasting trends in the foreign investment landscape within South Korea.