Foreigners sell S.Korean stocks for 5 months

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SEOUL, July 10 (Xinhua) — Foreign investors sold South Korean stocks for five straight months amid worry about an economic fallout from the COVID-19 outbreak, central bank data showed Friday.

Foreign fund worth 440 million U.S. dollars flowed out of the local stock market in June, keeping an outflow for the fifth consecutive month, according to the Bank of Korea (BOK).

The outflow amount was low compared with 4.32 billion dollars in April and 3.27 billion dollars in May respectively.

The continued outflow came as worry continued over the coronavirus pandemic that weakened the global trade.

In the domestic bond market, foreigners bought 2.92 billion dollars of bond in June after the purchase of 2.1 billion dollars in the previous month.

The bond price went higher as the BOK cut its target rate by 25 basis points to an all-time low of 0.50 percent in May after lowering it by 50 basis points in March.

Premium on the credit default swap (CDS), which gauges credit risk for the 5-year government bonds, averaged 27 basis points in June, down from 32 basis points in the previous month.

The won/dollar exchange rate stood at 1,203 won per dollar at the end of June, down from 1,238.5 won a month earlier. Enditem

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