Seoul, July 14 (SocialNews.XYZ) Foreign investors remained net sellers of South Korean equities for the fifth consecutive month in June, central bank data showed on Tuesday, despite a tech-led rally in the local stock market.
Offshore investors sold a net US$30.72 billion worth of local stocks and bonds last month, following net sales of $26.15 billion in May, according to data from the Bank of Korea (BOK).
They have remained net sellers since February, reports Yonhap news agency.
Breaking down the figures, foreign investors sold a net $32.37 billion worth of stocks in June, while purchasing a net $1.65 billion worth of bonds.
The BOK said net foreign selling widened from a month earlier as investor sentiment weakened amid concerns over excessive investment in artificial intelligence (AI) infrastructure.
Foreign investors also reduced their holdings of Korean stocks as part of portfolio rebalancing during the market rally, accelerating net capital outflows, it added.
Meanwhile, South Korea's inclusion in the World Government Bond Index (WGBI), a key global bond benchmark operated by FTSE Russell, led to net inflows into the bond market.
South Korea began a phased eight-month entry into the index in April. The WGBI tracks sovereign debt from more than 20 major economies, including the United States, Japan and China.
Seoul shares extended losses late on Tuesday morning, led by falls in semiconductors and other market heavyweights, amid investor worries over the renewed tensions in the Middle East and uncertainty over artificial intelligence (AI) sectors.
After opening 0.56 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended losses, trading 139.03 points, or 2.04 percent, higher at 6,667.90 as of 11:20 a.m.
The decline comes after the KOSPI nose-dived 9 percent in the previous session due to a massive sell-off of technology stocks.
Overnight, the Dow Jones Industrial Average fell 0.26 percent, while the tech-heavy Nasdaq composite dropped 1.55 percent.
A standoff between the United States and Iran over the Strait of Hormuz, along with a slump in SK hynix's U.S.-listed shares overnight, sapped investor sentiment.
—IANS
na/
Source: IANS
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