Foreign investors turned to net sellers of South Korean stocks in June as they sought to cash in gains in EV battery makers and other stocks, central bank data showed Wednesday.
Offshore investors sold US$310 million worth of local stocks last month, a shift from a net buying of $2.48 billion in May and a net purchase of $910 million in April, according to the data from the Bank of Korea.
Foreigners bought a net $3.23 billion of local bonds in June, following a net purchase of $8.96 billion in May, the fourth straight month of net buying.
Meanwhile, the premium on credit default swaps (CDS) for South Korea's five-year dollar-denominated currency stabilization bonds amounted to 35 basis points in June, down from the previous month's 43 basis points. A basis point is 0.01 percentage point.
The CDS premium reflects the cost of hedging credit risks on corporate or sovereign debt. A rise implies a drop in the credit of sovereign bonds and higher borrowing costs.
Source: Yonhap News Agency