Monthly foreign selling of South Korean stocks hit a record high in more than five years in October as investor sentiment has soured amid growing concerns over the economic outlook at home and abroad.
According to the Bank of Korea Friday, foreign investors net sold $4.27 billion worth of securities last month, extending their selling streak for two consecutive months. It was the largest net selling of local securities by foreigners since September last year.
Of the total, foreigners dumped stocks worth $4.03 billion, the largest sell-off since $4.63 billion in June 2013.
The offloading came in line with the global stock market rout triggered by concerns over the outlook on information technology companies, which had led the stock rallies across the world in the recent years, and economy at home and abroad.
Last month, the main Korea Composite Stock Price Index (Kospi) tumbled below the psychological level of 2,000 due to the sell-off. The index plunged 13.4 percent as of the last trading day in October from that of September. It has recovered above 2,000 in the recent trading, but lacks strong momentum that would carry the index further upwards.
Foreign investors also dumped a net $230 million worth of bonds in October, extending their selling streak to two straight months. But the sell-off was due to maturing bonds worth $3.46 billion last month, and a large amount was re-invested, reducing total off-loading volume from a month ago.
By Chung Seul-gi and Lee Eun-joo
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