Foreigners' net purchase of S. Korean stocks hits 19-month high in September

Seoul, Oct 15 (IANS) Foreign investors' net investment in South Korean stocks reached its highest level in more than 11/2 years last month amid expectations of improved conditions in the chip industry, central bank data showed on Wednesday.

Offshore investors purchased a net $4.34 billion worth of local stocks in September, marking the largest amount since February 2024, when net investment stood at $5.59 billion, according to the data from the Bank of Korea (BOK), reports Yonhap news agency.

It marked the second consecutive month of net inflows in foreign securities investment, following $180 million in August.

Foreign investors also bought $4.78 billion worth of bonds in September, rebounding from a net selling of $770 million a month earlier.

"Foreign investment was focused on the electronics sector amid expectations of better conditions in the semiconductor industry," the BOK said. "The growth in bond investment was driven by rising demand for mid- to long-term bonds."

According to the Korea Exchange (KRX), its semiconductor index rose 26.8 per cent, from 3,780.05 on Sept. 1 to 4,792.07 on Sept. 30, while the benchmark Korea Composite Stock Price Index (KOSPI) gained 9 per cent over the same period.

The central bank also noted that the Korean won weakened against the US dollar in September, falling to 1,402.9 won from August's 1,390.1 won.

Daily fluctuations in the won-dollar exchange rate decreased, averaging 3.9 won in September compared with 5.8 won a month earlier, the data showed.

Meanwhile, foreign investors net purchased Korean stocks in August, also marking the fourth consecutive month amid a strong performance of the local stock market.

Offshore investors bought a net 57 billion won ($41 million) worth of local stocks in August, following a net purchase of 3.41 trillion won the previous month, according to the data from the Financial Supervisory Service (FSS) last month.

According to the data, investors from the United States were the top buyers last month, net purchasing 1.4 trillion won worth of shares, followed by those from Ireland with 0.4 trillion won.

--IANS

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