Korea 3rd in Asian emerging markets for global stock buys

The South Korean stock market has taken third place in terms of investment by global investors trailing behind those in India and Taiwan this year, the Seoul bourse operator said Monday.

Stock investors plowed a net $42.4 billion in seven Asian emerging markets as of Nov. 26, while setting aside 18.4 percent, or $7.81 billion, in the South Korean market, the Korea Exchange said. Six others include India, Taiwan, the Philippines, Indonesia, Taiwan and Vietnam.

The investors purchased a net $5 billion worth of South Korean shares last year.

India topped the investment destination list of Asian emerging markets with $15.72 billion on hopes of aggressive stimulus measures and key rate cuts.

Taiwan followed with $14 billion because its subcontractors of tech giant Apple Inc. posted positive earnings on the back of brisk iPhone sales.

The investors purchased 7.1 trillion won ($6.37 trillion) worth of shares in South Korea‘s main bourse, the KRX said.

They mostly focused on large-cap techs and financials, while dumping chemicals, services and logistics and equipment that suffered from lagging demands.

Despite the net inflow of overseas funds, the benchmark KOSPI slid 1.52 percent this year, showing a stark contrast with other emerging markets that made a great leap forward this year.

(Yonhap)