Offshore investors buy S. Korean stocks for 4th month in August

SEOUL, Sept. 12 (Xinhua) -- Foreigners bought South Korean stocks for the fourth straight month due to efforts of the new government to boost the domestic stock market, financial watchdog data showed Friday.

Offshore investors purchased a net 57.0 billion won (40.9 million U.S. dollars) worth of local listed stocks in August, remaining net buyers since May, according to the Financial Supervisory Service (FSS).

The August net purchase was far lower than 3.41 trillion won (2.5 billion dollars) in the previous month amid robust demand to lock in profits.

Foreign investors turned into net sellers in the main bourse KOSPI, but they shifted into net buyers in the smaller KOSDAQ market.

The foreign stock purchase came as the government of President Lee Jae-myung revised laws and regulations to bolster the stock market.

The central bank cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after lowering it by the same basis points in October and November last year.

Foreign holdings of local listed stocks totaled 904.8 trillion won (649.3 billion dollars) at the end of August, taking up 27.5 percent of the total market capitalization.

Overseas investors snapped up a net 4.42 trillion won (3.2 billion dollars) worth of local listed bonds in August.

Given the maturing debts worth 5.04 trillion won (3.6 billion dollars), the foreign net disinvestment in the local bond market stood at 620 billion won (445 million dollars) last month.

The foreign ownership of domestic listed bonds amounted to 306.7 trillion won (220.1 billion dollars) at the end of August, accounting for 11.3 percent of the total listed bonds. ■