UK-Based Funds Purchased 2.2 Trillion KRW of Domestic Stocks in November

[Image source=Yonhap News]

[Asia Economy Reporter Eunmo Koo] Among the funds of foreign investors who have been buying domestic stocks since last month and driving up the index, British capital accounted for the largest proportion. Since American capital has had a high share in the domestic stock market so far, attention is focused on whether this is short-term capital.

According to the Financial Supervisory Service on the 14th, foreigners net purchased 6.1 trillion won in the domestic stock market in November. This is the largest net purchase amount since about 8.3 trillion won in September 2013. They bought 5.857 trillion won and 268 billion won in the KOSPI and KOSDAQ markets, respectively.

By region, European capital inflow was more than three times that of the Americas (1.4 trillion won), reaching 4.5 trillion won. In particular, by country, British capital accounted for a large share. British capital purchased 2.216 trillion won worth of domestic stocks in November alone. This is more than twice the American net purchase amount of 989 billion won and accounts for 36% of the total foreign net purchase amount. It also exceeds the net purchase amounts of the US (1.998 trillion won) and the UK (1.351 trillion won) in September 2013, when foreigners had the highest net purchase of domestic stocks, by 200 billion won and 900 billion won, respectively.

British capital began actively buying domestic stocks from October. During October alone, this region's capital purchased 1.258 trillion won worth of stocks, which accounted for most of the total foreign net purchase amount (1.358 trillion won) that month. The domestic stocks held by British capital increased to 53.972 trillion won at the end of last month, expanding its share of total foreign-held domestic stocks from 7.6% at the end of September to 8.0% at the end of November. This contrasts with the American share, which shrank from 41.8% to 41.4% during the same period.

Generally, British capital is considered to have a stronger short-term nature than American capital, so the market is closely watching the trends of these funds. Hedge funds domiciled in tax havens outside the US are mainly classified as European capital centered on the UK, and the nature of this capital has tended to enter and exit Korea in the short term with a high turnover rate.

This content was produced with the assistance of AI translation services.