ZCZC
BCN-30
S.KOREA-FOREIGN-CAPITAL
Foreign capital outflow from S.Korea hits 13-month high in October
SEOUL, Nov. 9, 2018 (BSS/Xinhua) – Foreign capital outflow from South
Korea’s financial market hit the highest in 13 months in October as the
global stock market tumble boosted demand for safe assets, central bank data
showed Friday.
A total of 4.27 billion U.S. dollars flowed out of the South Korean
financial market in October, marking the biggest foreign fund outflow since
September last year, according to the Bank of Korea (BOK).
Among the total, foreigners dumped 4.03 billion dollars of local stocks in
October, the biggest since June 2013.
It was attributable to the global stock market slump amid rising worry
about the global IT industry, caused by the flagging earnings among tech
companies.
The benchmark Kospi index plunged 13.4 percent last month, falling below
the psychological support level of 2,000 points.
Foreign investors sold 230 million dollars of domestic listed bonds in
October, marking the foreign capital outflow for the second consecutive
month.
Amidst the global stock market uncertainty, the daily average volatility in
the won/dollar exchange market posted the highest in four months.
Premium of the credit default swap on the five-year foreign exchange
stabilization bond, which measures sovereign credit risk, was 39 basis points
in October, unchanged from the previous month.
BSS/XINHUA/HR/1455