SEOUL, June 12 (Xinhua) -- Foreign investors bought South Korean stocks in 10 months due to expectations for the launch of a new government, financial watchdog data showed Thursday.
Foreigners purchased a net 2.01 trillion won (1.5 billion U.S. dollars) worth of domestic listed stocks in May, turning into net buyers in 10 months, according to the Financial Supervisory Service (FSS).
Offshore investors shifted into net buyers both in the main bourse KOSPI and the smaller KOSDAQ market.
The foreign stock purchase came amid expectations for a stabilized political situation.
President Lee Jae-myung took office on June 4 following a snap election, caused by the ouster of his predecessor from office over the botched martial law bid last December.
The central bank cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after lowering it by the same basis points in October and November last year.
Foreign holdings of local listed stocks totaled 748.8 trillion won (551.8 billion dollars) at the end of May, taking up 26.7 percent of the total market capitalization.
Overseas investors purchased a net 16.66 trillion won (12.3 billion dollars) worth of local listed bonds in May.
Given the maturing debts worth 5.32 trillion won (3.9 billion dollars), the foreign net investment in the local bond market stood at 11.34 trillion won (8.4 billion dollars) last month.
The foreign ownership of domestic listed bonds amounted to 300.5 trillion won (221.4 billion dollars) at the end of May, accounting for 11.2 percent of the total listed bonds. ■
