Europeans’ appetite for stocks rising

Foreign investors’ buying of local stocks surged this year on the back of eased fears over the euro zone debt crisis that fueled a huge inflow of European money into emerging markets such as Korea, data showed yesterday.

Foreign investors had scooped up local stocks worth a net 8.8 trillion won ($7.82 billion) as of Monday, according to data by the Financial Supervisory Service (FSS), the country’s financial regulator.

Offshore investors have been on a buying spree since late last year, with their purchases of local stocks reaching a net 6.2 trillion won in January.

Of the total stock purchases made by foreigners, European money accounted for the most, with a net 3 trillion won, followed by the U.S. with a net 2.3 trillion won. Cayman Islands-based investors snapped up a net 770 billion won and investors from Singapore bought a net 580 billion won, according to the data.

Aggressive foreign buying came as fears ebbed over the debt-laden euro zone, prodding overseas investors to expand their portfolios and sending them scurrying to make risky bets in emerging markets, analysts said.

The rally by foreign investors is expected to persist as the local market has room for further gains, they said. Yonhap