SEOUL, Nov. 12 (Xinhua) -- Foreign funds flowed out of the South Korean stock and bond markets last month amid the rising demand to lock in profits, central bank data showed Tuesday.
Foreign capital worth 590 million U.S. dollars flowed from the local stock and bond markets in October, the biggest foreign fund outflow since October last year, according to the Bank of Korea (BOK).
Foreigners withdrew 40 million U.S. dollars from the local stock market, while 550 million U.S. dollars pulled out of the bond market.
It came as foreigners sought to take profits amid the easing worry about the global trade dispute. The BOK's rate cut to a record low of 1.25 percent last month also drove foreign investors to lock in profits.
The daily average volatility in the won/dollar exchange market widened to 0.33 percent in October from 0.31 percent in the previous month.
Premium for the five-year credit default swap (CDS), which reflects sovereign credit risk for the five-year government bonds, averaged 32 basis points in October, up 1 basis point from a month earlier.
The daily average transaction of foreign currencies in the inter-bank market fell 1.67 billion U.S. dollars over the month to 25.92 billion U.S. dollars last month.
