Foreign investors have scooped up more than a net 10 trillion won ($8.93 billion) worth of Korean equities this year, with their holdings of local stocks and bonds accounting for over one third of the country’s market capitalization, data showed Friday.
The combined value of stocks and bonds listed on the main bourse and owned by foreigners reached a net 10.8 trillion won as of Feb. 9, according to the data by the Korea Exchange.
As of Jan. 25, foreign investors accounted for 33.3 percent of the total market capitalization, owning stocks and bonds worth a combined 371.4 trillion won out of 1,115.5 trillion won.
Their proportion surpassed the one-third mark for the first time since October 2007, the data showed.
“Korea is attractive to foreign investors, as the local market is fed by ample global liquidity and a recent appreciation of the local currency lured them further to extend their buying,” said Kim Chul-joong, an analyst at Korea Investment & Securities Co.
China is not yet a favorite place to make bets despite its size because the country’s financial authorities limit offshore investors’ investments with fussy qualification procedures, he said.
Foreign investors heavily invested in large cap shares, including market bellwether Samsung Electronics Co., No. 2 chipmaker Hynix Semiconductor Inc., and the world’s biggest shipyard Hyundai Heavy Industries Co.
Analysts projected the buying binge by foreign investors will continue for some time with an additional buying of local stocks worth 3-4 trillion won.
(Yonhap News)
