Foreign investors continue to sell Kospi stocks

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Foreign investors continue to sell Kospi stocks

Foreigners remained net sellers of Korean stocks this month despite a market rebound and rising turnover, data showed Wednesday.

Offshore investors were net sellers of shares traded on the main bourse for nine straight sessions between Nov. 7 and Tuesday, according to the data from the bourse operator, Korea Exchange.

Foreign investors sold a net 1.02 trillion won ($870 million) of local stocks during the cited period.

It was the longest net selling streak since a 13-session run between late July and mid-August.

Offshore investors have remained net sellers for the fourth consecutive month since August, when the benchmark Kospi fell below the psychologically important level of 2,000.

This month’s foreign net selling came in spite of a recovery in stock prices and an increase in trading volume.

After recovering to 2,100-point territory on Nov. 1, the Kospi finished above that mark for 13 sessions until Tuesday.

The main market’s daily turnover averaged 5.4 trillion won during the 13-day period, with the full-month figure on pace to rebound to the 5 trillion won range for the first time in six months.

Market watchers attributed foreign investors’ exit from the local stock market to lingering concerns over trade talks between the United States and China, the world’s two largest economies.

“Offshore investors appear to be shying away from the South Korean stock market amid nagging hitches and uncertainties surrounding Chinese-American trade negotiations,” said Noh Dong-kil, an analyst at NH Investment & Securities.

Earlier this month, U.S. President Donald Trump rebutted China’s claim that the United States had agreed to roll back some of its tariffs on Chinese goods in a move to defuse the crippling trade showdown.

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