'Sell Korea' continues amid weakening growth momentum in Asia

'Sell Korea' continues amid weakening growth momentum in Asia

gettyimagesbank

By Anna J. Park

Foreign investors’ selling spree of Korean stocks has been continuing this year, as the combined amount of their net-selling of local stocks so far this year reaches 31 trillion won ($26 billion), far exceeding that of last year.

According to the Korea Exchange (KRX), foreign investors net-sold a total of 30.7 trillion won worth of stocks listed on both the main benchmark KOSPI and tech-heavy Kosdaq from the start of the year until last week. The amount combined already surpasses the entire 24.7 trillion won net-sold last year.

By month, foreign investors net-sold local stocks for seven months this year, except April when they net-purchased 82.9 billion won. In August alone, they net-sold 6.5 trillion won worth of Korean stocks. Due to their selling frenzy, KOSPI’s rate of return this month ― minus 4.43 percent ― is the lowest among 20 major countries’ stock market returns for August.

With the continued net-selling, foreign investors’ stake out of the entire market cap of Korean stocks has also dwindled to around 32 percent this month, down from 35 percent earlier this year.

The Korean won’s strengthening exchange rate against the dollar is also cited as another factor awakening the selling-off of Korean stocks, said stock analysts, Monday.

The won-dollar exchange rate reached its yearlong peak on Aug. 20 ― 1,179.6 won per dollar ― a 9 percent increase from the start of this year when it stood at 1,183.5 won per dollar. The won’s depreciation precipitates another selling spree of Korean stocks.

“Once the U.S.’s tapering officially begins within this year, the money exodus from the emerging market could accelerate,” said Kim Hak-gyun, research head at Shinyoung Securities.

The continuing resurgence of the Delta variant of the coronavirus in Korea, as well as growing uncertainty over China’s strengthened business regulations, have also played havoc on the forecast of Korean stocks’ profitability.

“The current exodus of foreign money is caused by multiple factors, including tapering concerns, China risks as well as the worsened pandemic situation in Korea. In order for foreign investors to come back, an overall economic growth momentum in Asia market seems to be necessary,” Park Sang-hyun, chief economist at Hi Investment & Securities, said over the phone. “It seems they’re worried whether the Korean economy’s third-quarter growth might be slowed due to the prolonged COVID-19 situation in the nation.”

Internet Explorer Channel Network
News Related

OTHER NEWS

Jeju Island most popular destination for travel with pets

gettyimagebank By Jun Ji-hye Jeju Island has ranked at the top in a recent survey of popular destinations for travels with companion animals, according to the Korea Tourism Organization (KTO). ... Read more »

Wall Street strikes fresh records

Source: Reuters Wall Street opened in record territory on Tuesday as a host of tech firms were set to announce their results. The S&P 500 and Dow both powered to ... Read more »

Top security official says hard to predict another inter-Korean summit

Suh Hoon, director of the National Security Office at the presidential office Cheong Wa Dae, is seen speaking with press at Ronald Reagan Washington National Airport on Oct. 10. (Yonhap)President ... Read more »

South Korean violinist wins second prize at Paganini contest in Italy

Chung Nurie, third from left, a South Korean violinist, poses for a photo alongside other winners of the 56th International Paganini Prize Competition in Genova, Italy, in this photo provided ... Read more »

‘Comfort woman' calls on Seoul to bring case to UN body

Lee Yong-soo, a survivor of wartime sexual slavery by the Japanese military, speaks during a press conference on Tuesday. (Yonhap) A 93-year-old former “comfort woman” pleaded with the South Korean ... Read more »

Death of ex-President Roh raises mixed reactions

The photo of former President Roh Tae-woo is displayed at the May 18th National Cemetery in Gwangju, which commemorates the lives lost during the 1980 Gwangju Democratic Uprising.(Yonhap)The news of ... Read more »

New dramas about K-pop stars to air next month

The cast members of the upcoming SBS drama, “Let Me Be Your Knight” / Courtesy of BIG OCEAN ENM, SUPERMOON PICTURES By Dong Sun-hwa New dramas about K-pop stars are ... Read more »

[INTERVIEW] 'Life of K-pop star is tough, but I would do it again in my next life'

Sera, a former member of disbanded K-pop girl group, 9MUSES, speaks during a recent interview with The Korea Times at a studio in Mapo-gu, northern Seoul. Korea Times photo by ... Read more »

Kotak Mahindra Bank Q2 Results: Standalone profit falls 7%, but asset quality improves

Private sector lender Kotak Mahindra Bank on October 26 reported a 7 percent year-on-year decline in standalone profit at Rs 2,032 crore for the September 2021 quarter due to higher ... Read more »

Former President Roh, a key man in military coup and witness to democratization

Former President Roh Tae-woo (Yonhap)In 1997, Roh Tae-woo was sentenced to 22 1/2 years in jail — reduced to 17 years on appeal — and hefty fines, while Chun Doo-hwan ... Read more »

KT confirms routing errors caused network disruption

Telecom firm to compensate for damage By Kim Bo-eun Routing errors by KT employees caused the company’s nationwide network services disruption a day earlier, the telecommunications firm said Tuesday, pledging ... Read more »

Late President Roh credited for post-Cold War diplomacy, dialogue with N. Korea

In this file photo dated Dec. 14, 1990, then South Korean President Roh Tae-woo (L) shakes hands with Soviet President Mikhail Gorbachev prior to their summit talks at the Kremlin ... Read more »

Main opposition mourns death of late President Roh, vows to not repeat faults in his legacy

President Roh Tae-woo (L) and his wife, Kim Ok-sook, attend the opening ceremony of the 1988 Summer Olympics in Seoul in this file photo dated Sept. 17, 1988. Roh, who ... Read more »

Thoughtful Korean documentary films arouse empathy this fall

A poster for the documentary film, “Burning Flower” / Courtesy of Triple Pictures By Kwak Yeon-soo While interest in Korean films is somewhat on the wane due to the arrival ... Read more »

Chip shortage force Hyundai Motor to cut investment

The Chevrolet Silverados and GMC Sierra pickups built at Flint Assembly are packed on Sept. 21, in this file photo. AP-Yonhap By Kim Yoo-chul Hyundai Motor announced it will reduce ... Read more »

LG Display renews panel patent license with SEL

A model poses with LG Display’s bendable OLED display at the International Meeting on Information Display 2021 event in Seoul, Aug. 24. Courtesy of LG Display By Baek Byung-yeul LG ... Read more »

Dyson launches hair care products for year-end gifts

Dyson’s hair care products / Courtesy of Dyson Korea By Baek Byung-yeul Global tech company Dyson has released four kinds of gifts comprised of its hair care products ahead of ... Read more »

Ex-President Roh Tae-woo dies, aged 88

Former President Roh Tae-woo (Yonhap)Former President Roh Tae-woo, the country‘s first directly elected president, died Tuesday at age 88, leaving behind a checkered past and unanswered questions surrounding his role ... Read more »

Controversial policies to continue in Gyeonggi Province even without Lee Jae-myung

Lee Jae-myung, presidential candidate representing the ruling Democratic Party, exchanges remarks with officials of Gyeonggi provincial government after announcing his resignation from the gubernatorial post Monday. (Joint Press Corps)Lee Jae-myung ... Read more »

'Living with COVID-19' plans criticized for discrimination against unvaccinated people

People wait to see if they show any abnormal reactions after receiving COVID-19 vaccine shots at a vaccination center in Seoul’s Mapo District, Tuesday. Yonhap By Jun Ji-hye Following the ... Read more »

POSCO takes leading role in hydrogen reduction steel

POSCO Chairman Choi Jeong-woo gives the opening speech at the Hydrogen Iron & Steel Making Forum 2021, at the Grand InterContinental Seoul Parnas, Oct. 6. Courtesy of POSCO Group By ... Read more »

Australian sharemarket closes barely changed again as investors remain ‘tentative'

The Australian sharemarket went on a wild rollercoaster ride in volatile morning trade, then slumped in the afternoon, finishing barely changed, but Crown Resorts rocketed after the Victorian royal commission ... Read more »

Moon congratulates Lee on candidacy, asks for focus on policies

President Moon Jae-in greets Lee Jae-myung, the presidential nominee of the ruling Democratic Party of Korea, at Cheong Wa Dae on Tuesday. (Cheong Wa Dae)President Moon Jae-in met with Lee ... Read more »

Korea's yearly trade volume tops $1 trillion at fastest pace ever

gettyimagesbank South Korea’s trade volume for this year surpassed the $1 trillion mark Tuesday on the back of solid export growth amid the global recovery from the pandemic, reaching the ... Read more »

Weapons maker accused of neglecting to pay bonuses

South Korea reveals its first 3,000-ton class homegrown submarine capable of carrying ballistic missiles on August 13, 2021. (South Korean Navy)Workers at South Korea’s chief weapons developer were offered no ... Read more »

Aespa member Giselle apologizes for racial slur

By Dong Sun-hwa Aespa’s Giselle / Courtesy of SM Entertainment Giselle of K-pop girl group aespa issued an apology Monday for making a racial slur while singing an American pop ... Read more »

Poland supports EU membership: Polish ambassador

Polish Ambassador Piotr Ostaszewski speaks during a recent interview with The Korea Herald at his residence in Sungbuk-gu on Friday. (Sanjay Kumar/The Korea Herald)Poland’s ambassador to Korea stressed his country’s ... Read more »

Former President Roh Tae-woo dies at 88

Roh Tae-woo. (Yonhap News)Former President Roh Tae-woo died Tuesday at the age of 88, his aides said. Roh, who served as president from 1988-93, was recently admitted to a hospital ... Read more »

RPSG Ventures share price up 5% on bid win for Lucknow IPL team

Read more »

Indus Towers shares gain after 38% jump in Q2 profit; global brokerage raises forecast by 3-5%

Representative image Indus Towers share price opened 2 percent higher on October 26, a day after the telecom infrastructure firm reported a 38 percent rise in consolidated net profit to Rs ... Read more »

Gold prices likely to stay volatile amid global economic uncertainty

Gold prices edged lower on October 26 weighed down by an uptick in the dollar as investors wait for the key central bank meetings this week. On the Multi-Commodity Exchange ... Read more »

Park Hyatt Busan presents 'Japanese premium whisky highball sampler'

By Jun Ji-hye Living Room Bar at Park Hyatt Busan is presenting the “Japanese premium whisky highball sampler,” offering guests a chance to try highballs made with Japan’s leading single-malt ... Read more »

JW Marriott Hotel Seoul to host 2021 Autumn Wine Fair

JW Marriott Hotel Seoul plans to host the 2021 Autumn Wine Fair at The Margaux Grill’s seventh-floor garden for three days from Nov. 10. Courtesy of JW Marriott Hotel Seoul ... Read more »

SK sees silver lining in acute chip shortage

In this file photo, a Microsoft computer is among items displayed at a Microsoft store in suburban Boston, Massachusetts. AP-Yonhap World’s No.2 chipmaker to pursue profitability over market share By ... Read more »

Samsung heir Lee sentenced to W70m fine for illegal use of propofol

Samsung Group heir Lee Jae-yong heads to the Seoul Central District Court on Tuesday on a ruling over a medication case. (Yonhap)Samsung Group heir Lee Jae-yong was sentenced to a ... Read more »

Police to prohibit late night questionings under rights panel recommendation

This undated file photo shows handcuffs. (Yonhap)Police will ban late night questionings and minimize the use of handcuffs and ropes in an effort to improve human rights of detainees, officials ... Read more »

Sookmyung Women's University to construct 'metaverse' campus

Participants in a memorandum of understanding signing ceremony for the construction of Sookmyung Women’s University’s “metaverse” campus pose at the university in Seoul, Monday. From the right are Shinhan Bank’s ... Read more »

S. Korea, US to establish senior-level dialogue channel for semiconductor cooperation

(123rf)South Korea and the United States have decided to set up a new director-level dialogue channel for regular discussions on semiconductor issues, Seoul’s industry ministry said Tuesday. The agreement was ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic