Global Funds Buy Most Korean Stocks on Record, Cut Bonds
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Overseas investors increased holdings of South Korean shares last month by the most on record, while pulling money from local-currency bonds, data today from the financial regulator showed.
The amount of equities owned by foreign funds rose by 6.6 trillion won ($5.8 billion) to 383.9 trillion won, the Financial Supervisory Service said in an e-mailed statement today. That is equivalent to 31 percent of shares listed on Korea Exchange. Speculation that the Federal Reserve will embark on another round of monetary stimulus and the European Central Bank will act to resolve the region’s debt crisis spurred demand for Korean equities, according to the FSS.