Foreigners net sold over $22 billion in Korea shares, third largest ever, in 2020

Offshore investors sold more than a net $2 billion in Korean shares in December and their third annual largest volume of 24.4 trillion won ($22 billion) for the full 2020.

According to the Financial Supervisory Service data on Monday, foreigners net sold 2.69 trillion won in Korean equities last month – 3.99 trillion won in the benchmark Kospi and net buying 1.3 trillion won in the secondary Kosdaq. After keeping up the selling spree, foreigners had net bought 1.4 trillion won worth stocks in October and 6.1 trillion won, the highest in seven years and two months, in November.

For full 2020, foreigners net sold 24.4 trillion won, the third biggest selloff after 2007 and 2008.

The value of their holdings nevertheless hit a record high of 764.3 trillion won as of the end of December, accounting for 31.4 percent of total market capitalization in line with the record performance of Kopsi led by retail stock fad.

In the bond market, foreigners net purchased 5.9 trillion won in December but the month ended with a net collection of 194 billion won with 6.06 trillion won worth reaching maturity.

Bonds held by the foreign investors amounted to 150.1 trillion won as of the end of December, down 100 billion won from a month earlier. They made up 7.3 percent of all outstanding debt.

Investors from Europe made a net investment of 900 billion won, followed by those from Asia 200 billion won and those from the Americas 100 billion won. Middle Eastern investors net collected 800 billion won.

Asian investors held the largest 73.5 trillion won of bonds, accounting for 49.0 percent of total foreign ownership. European investors held 45.2 trillion won and Americans 12.8 trillion won.

Foreigners net invested 100 billion won in Korean government bonds but net collected 700 billion won from monetary stabilization bonds.

By maturity, foreign investors net invested 2.7 trillion won of five years or longer dated bonds and 1.7 trillion won of those dated between one year and five years. They net collected 4.6 trillion won of bonds dated shorter than one year.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]