Foreign funds flow into S. Korean financial market for 6 months

Source: Xinhua| 2019-05-10 16:00:06|Editor: xuxin
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SEOUL, May 10 (Xinhua) -- Foreign funds continued to flow into the South Korean financial market for six straight months through April, central bank data showed Friday.

Foreigners bought a net 2.72 billion U.S. dollars of local securities, including 2.24 billion U.S. dollars of stocks and 0.48 billion U.S. dollars of bonds, in the domestic financial market in April, according to the Bank of Korea (BOK). The foreign capital inflow continued since November last year.

Despite the economic contraction in the first quarter, foreign funds flowed in the South Korean financial market on expectations for an export rebound in the second quarter.

South Korea's real gross domestic product (GDP), adjusted for inflation, shrank 0.3 percent in the first quarter from three months earlier due mainly to export reduction, caused by the global economic slowdown.

Premium for credit default swap, which gauges credit risk for the five-year sovereign debts, averaged 32 basis points in April, up from 30 basis points in the previous month.

Influenced by the strong U.S. dollar, the South Korean currency plunged 2.9 percent versus the greenback for the past month.

Volatility in the won/dollar exchange rate was 0.28 percent last month, up from 0.21 percent in the prior month.