Foreigners Net Sell Domestic Stocks in March for the First Time in 6 Months... 2.1 Trillion Won 'Sell-off'

by Lee Jungyun

Published 11 Apr.2023 12:00(KST)

Last month, foreigners were net sellers of domestic listed stocks for the first time in six months. Bonds recorded net investment for the first time in four months.

According to the foreign securities investment trends announced by the Financial Supervisory Service on the 11th, foreigners net sold 2.142 trillion KRW worth of listed stocks last month. They net sold 1.266 trillion KRW in the KOSPI market and 876 billion KRW in the KOSDAQ market. As of the end of last month, foreigners held 649.7 trillion KRW, accounting for 26.4% of the total market capitalization.

By region, Europe was a net buyer with 100 billion KRW, while Asia (1.4 trillion KRW) and the Middle East (200 billion KRW) were net sellers. By country, Ireland (1 trillion KRW) and Luxembourg (100 billion KRW) were net buyers, while Singapore (1 trillion KRW) and the United Kingdom (900 billion KRW) were net sellers. The largest holding was the United States with 265.6 trillion KRW, followed by Europe with 200.1 trillion KRW, Asia with 88.6 trillion KRW, and the Middle East with 21.3 trillion KRW.

In the bond market last month, foreigners net purchased 11.684 trillion KRW worth of listed bonds and received 8.62 trillion KRW in maturity repayments, resulting in a total net investment of 3.064 trillion KRW. As of the end of last month, they held 223.9 trillion KRW, accounting for 9.3% of the outstanding listed bonds.

By region, Europe (2 trillion KRW) and the Middle East (900 billion KRW) were net investors, while Asia (800 billion KRW) and the Americas (100 billion KRW) were net withdrawals. Holdings were identified as Asia with 101.4 trillion KRW (45.3%) and Europe with 68.1 trillion KRW (30.4%).

Monetary stabilization bonds (3.4 trillion KRW) and government bonds (700 billion KRW) were net invested in, while corporate bonds (100 billion KRW) were net withdrawn. As of the end of last month, holdings included government bonds at 193.5 trillion KRW (86.5%) and special bonds at 29 trillion KRW (13.0%).

By remaining maturity, bonds with less than one year (1.8 trillion KRW) were net withdrawn, while bonds with 1 to less than 5 years (2.9 trillion KRW) and over 5 years (1.9 trillion KRW) were net invested. As of the end of last month, bonds with less than one year remaining maturity accounted for 56.9 trillion KRW (25.5%), 1 to less than 5 years for 81.5 trillion KRW (36.4%), and over 5 years for 85.3 trillion KRW (38.1%).