Institutions' foreign securities holdings up 2.4% in Q1: BOK
Traders work on the floor of the New York Stock Exchange on Wall Street, N.Y., U.S., Thursday. UPI-Yonhap
Korean institutions' investment in foreign securities rose 2.4 percent in the first quarter compared with the previous quarter, central bank data showed Friday.
The outstanding value of foreign securities held by local institutional investors stood at $430.39 billion as of end-March, up by $10.05 billion from three months earlier, according to the data from the Bank of Korea (BOK).
Foreign securities include stocks, bonds and "Korean paper," which refers to foreign currency-denominated securities issued by the Korean government, banks and companies in overseas markets.
Institutions' investment in foreign stocks advanced $6.37 billion on-quarter, and the value of their foreign bond holdings also climbed by $2.85 billion.
"Despite valuation losses from a market correction in the U.S., investors increased their holdings on bargain-hunting demand," a BOK official said. "Net investments in foreign bonds also expanded, driven by expectations of a rate cut by the U.S. Federal Reserve."