Foreign fund flows out of S. Korean stock market in August

Source: Xinhua| 2020-09-11 15:09:32|Editor: huaxia

SEOUL, Sept. 11 (Xinhua) -- Foreign fund flowed out of the South Korean stock market in August amid the COVID-19 resurgence here, central bank data showed Friday.

Foreign investors offloaded domestic stocks worth 890 million U.S. dollars in August, after buying shares worth 1.39 billion dollars in the previous month, according to the Bank of Korea (BOK).

The foreign stock sale came amid the COVID-19 resurgence. The number of daily infections increased in triple digits since Aug. 14 due to cluster infections in the Seoul metropolitan area.

Foreign capital worth 670 million U.S. dollars flowed into the domestic bond market in August amid the record-low policy rate. The BOK cut its benchmark interest rate by 25 basis points to an all-time low of 0.50 percent in May.

Premium on credit default swap (CDS), which gauges credit risk for the 5-year government bond, averaged 22 basis points in August. It was down 25 basis points tallied in July.

The won/dollar exchange rate stood at 1,187.8 won per dollar as of the end of August, down 3.5 won from a month earlier. Enditem