Institutions' foreign securities holdings up for 3rd quarter in Q3: BOK
This photo shows dealing room of Hana Bank in central Seoul, Monday / Yonhap
Korean institutions' investment in foreign securities rose for the third consecutive quarter in the three months ended in September, partly due to a rise in investment but also on the back of rising value of their holdings, central bank data showed Monday.
The outstanding value of foreign securities held by local institutional investors stood at $490.21 billion as of end-September, up $24.67 billion from three months earlier, according to the data from the Bank of Korea (BOK).
The end-September reading also marks a sharp increase from $427.68 billion a year earlier.
Foreign securities include stocks, bonds and "Korean paper," which refers to foreign currency-denominated securities issued by the Korean government, banks or companies in overseas markets.
By type, local institutions' investment in foreign stocks advanced $19.13 billion on-quarter, while the value of their foreign bond holdings climbed $4.66 billion over the cited period.
"Net investments in foreign stocks and bonds have increased, resulting in valuation gains, primarily due to solid gains in major stock markets and expectations of U.S. interest rate cuts," a BOK official said.