Foreign buying of Korean stocks hits 5-month high in February on chip sector recovery hopes
Traders work in the dealing room of Hana Bank in Jung District, Seoul, March 13. Yonhap
Foreign investors scooped up Korean stocks in February for the fourth consecutive month on the back of hopes for a recovery in the chipmaking sector and stock-boosting measures, central bank data showed Wednesday.
Offshore investors bought a net $5.59 billion worth of local stocks last month, following $2.64 billion worth of purchases in November 2023, $2.52 billion in December 2023 and $2.51 billion the previous month, according to the data from the Bank of Korea (BOK).
The February purchases also marked the largest since September 2013, when the comparable figure was $7.66 billion.
The central bank said foreigners' net stock purchases came amid the outlook for a rebound in the chipmaking sector and measures to boost undervalued stocks despite woes over a delay in restrictive monetary stances in major economies.
Foreigners bought a net $2.52 billion worth of local bonds last month, following a net purchase of $1.89 billion a month earlier, the data showed.
Meanwhile, the premium on credit default swaps (CDS) for Korea's five-year dollar-denominated currency stabilization bonds amounted to 32 basis points in February, up from 29 basis points the previous month. A basis point is 0.01 percentage point.
The CDS premium reflects the cost of hedging credit risks on corporate or sovereign debt. A rise implies a drop in the credit spreads of sovereign bonds and higher borrowing costs. (Yonhap)