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Foreigners buy S.Korean bonds for 6th month in June, but pace slows
July 9, 2017 / 9:00 PM / 4 months ago

Foreigners buy S.Korean bonds for 6th month in June, but pace slows

SEOUL, July 10 (Reuters) - Offshore investors continued their purchases of South Korean bonds for six months in a row in June and stock holdings hit an all-time high, official data showed on Monday, as firming exports supported the economic recovery.

Foreign investors’ bond holdings rose by a net 1.6 trillion won ($1.39 billion) in June, less than the 2.1 trillion won net increase in May, the Financial Supervisory Service (FSS) said.

The surge in investment comes amid double-digit growth in exports. South Korea’s exports grew for the sixth month in a row in June, offsetting tepid manufacturing activity as normalising global demand continued to boost sales of memory chips and petrochemical products.

At the end of June, investors in Asia held 41.7 trillion won worth of South Korean bonds, making them the biggest holders. Investors in Europe held 35.6 trillion won worth of bonds while those in North America held 13.1 trillion.

By category, investors mainly purchased monetary stabilisaton bonds (MSBs), worth 1.5 trillion won, and bought 0.2 trillion won worth of treasury bonds.

Foreign investors’ holdings in stocks hit a record high of 597.7 trillion won as they continued to buy South Korean stocks for the seventh consecutive month. They purchased a net 1.8 trillion won worth during June. ($1 = 1,154.0800 won) (Reporting by Dahee Kim; Editing by Sam Holmes)

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