Foreigners Net Sell Domestic Stocks for Two Consecutive Months... June Bond Investment Hits Record High
[Asia Economy Reporter Ji Yeon-jin] While foreigners sold domestic stocks for two consecutive months, they purchased domestic bonds in record amounts.
The Financial Supervisory Service announced on the 12th that foreigners net sold 499 billion KRW worth of listed stocks last month and net invested 9.387 trillion KRW in listed bonds, resulting in a total net investment of 8.088 trillion KRW.
Stocks have been net sold for two consecutive months since May. As of the end of last month, foreigners held 842.3 trillion KRW in listed stocks, accounting for 29.9% of the market capitalization. Including 189 trillion KRW in listed bonds, they hold a total of 1,031.3 trillion KRW in listed securities.
Last month, foreigners net purchased domestic stocks in Europe (1 trillion KRW) and the Middle East (200 billion KRW), while net selling occurred in the Americas (-1.1 trillion KRW) and Asia (-800 billion KRW). The United States held 342.3 trillion KRW in domestic stocks, accounting for 40.6% of all foreigners, followed by Europe with 264.1 trillion KRW (31.4%).
During this period, foreigners net purchased 17.819 trillion KRW in listed bonds, redeemed 8.432 trillion KRW at maturity, resulting in a total net investment of 9.387 trillion KRW. As of the end of last month, foreigners’ bond holdings totaled 189 trillion KRW, an increase of 9.8 trillion KRW from the previous month, continuously setting new records since January this year. Monthly bond investment amounts also reached an all-time high.
Last month, Asia made the largest net investment of 4.5 trillion KRW, followed by Europe (2.2 trillion KRW), the Americas (1.5 trillion KRW), and the Middle East (700 billion KRW). Asia’s holdings amounted to 88.9 trillion KRW, accounting for 47.1% of all foreigners. Europe held 56.06 trillion KRW (30.0%) and the Americas 17.1 trillion KRW (9.0%).
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During this period, foreigners made net investments in both government bonds (5.6 trillion KRW) and Monetary Stabilization Bonds (3 trillion KRW), and as of the end of last month, held 146.2 trillion KRW (77.4%) in government bonds and 42.7 trillion KRW (22.6%) in special bonds.
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