Seoul, Aug 13 (IANS) Foreign investors remained net sellers of South Korean securities for the sixth consecutive month in July, central bank data showed on Thursday, amid a broader market readjustment.
Offshore investors sold a net US$21.65 billion worth of local stocks and bonds last month, following net sales of 30.72 billion in June, according to data from the Bank of Korea (BOK).
They have remained net sellers since February, reports Yonhap news agency. Foreign investors sold a net $20.7 billion worth of stocks and a net $960 million worth of bonds in July.
The BOK said the sell-off narrowed from a month earlier as the stock market correction discouraged foreigners from rebalancing their portfolios amid resurgent Middle East tensions and lingering concerns over excessive investment in artificial intelligence (AI) infrastructure.
The Korea Composite Stock Price Index (KOSPI) fell more than 20 percent in July alone due mainly to heavy losses in tech shares.
The BOK said reduced foreign portfolio rebalancing also helped the Korean won strengthen against the U.S. dollar during the cited period amid the greenback’s recent weakness globally.
The won was trading at 1,424 won per dollar at the end of July, compared with 1,549.4 won a month earlier.
Meanwhile, South Korean stocks extended gains on Thursday morning, led by a rally in big-cap semiconductor shares.
After opening 2.96 percent higher, the benchmark Korea Composite Stock Price Index (KOSPI) rose 275.96 points, or 4.19 percent, to 6,855 as of 11:20 a.m.
Overnight, U.S. stocks tied to the artificial intelligence technology sector rose. The S&P 500 gained 0.26 percent, closing just shy of a record high, while the Nasdaq composite advanced 0.54 percent. In contrast, the Dow Jones Industrial Average edged down 0.04 percent.
In Seoul, blue-chip shares led the advance.
Market bellwether Samsung Electronics rose a sharp 5.48 percent, while its chipmaking rival SK hynix also jumped 7.55 percent.
SK Square, the parent of SK hynix, shot up 8.98 percent, and Samsung Electro-Mechanics, an electronics component affiliate of Samsung Electronics, surged 12.73 percent.
—IANS
na/
