Net Inflow of Foreign Securities Investment Funds in May... Stocks Outflow for 4 Consecutive Months

[Asia Economy Reporter Seo So-jeong] In May, the total securities investment funds from foreigners in domestic stocks and bonds turned to net inflow. Net outflow of stock funds continued for the fourth consecutive month, while bond funds recorded net inflow for the 17th consecutive month.

According to the 'International Finance and Foreign Exchange Market Trends' announced by the Bank of Korea on the 9th, foreign securities investment funds in May turned to a net inflow of 770 million dollars after three months.

Among foreign securities investment funds, stock funds recorded net outflow for the fourth consecutive month due to concerns over the slowdown in the Chinese economy and the prolonged Ukraine crisis. The net outflow in May was 1.29 billion dollars, a decrease in net outflow compared to the previous month (4.26 billion dollars).

Foreign bond investment funds expanded net inflow due to the inflow of public funds. The net inflow increased from 470 million dollars in April to 2.06 billion dollars in May, marking the longest record of 17 consecutive months of net inflow.

The credit default swap (CDS) premium of the 5-year Korean government bond (Foreign Exchange Stabilization Fund bond) continued to rise, recording a monthly average of 44 basis points (1bp=0.01 percentage point) last month. It rose 11 basis points compared to the previous month.

The daily fluctuation of the won-dollar exchange rate last month averaged 5.7 won, which was larger than April's 5.1 won.

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