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

Xinhua
11 Jun 2021, 14:30 GMT+10

SEOUL, June 11 (Xinhua) -- Foreign fund flowed out of the South Korean stock market last month on worry about an inflationary pressure, central bank data showed Friday.

The net foreign sale of domestic stocks amounted to 8.23 billion U.S. dollars in May, according to the Bank of Korea (BOK). Foreigners bought local shares worth 590 million dollars in April.

It came amid the rising concern about an inflationary pressure, especially in the United States that may lead to the faster-than-expected hike in the U.S. benchmark interest rate.

The U.S. consumer price index (CPI) advanced 5.0 percent in May from a year earlier, beating market expectations of about 4.7 percent.

The South Korean CPI gained 2.6 percent in May on a yearly basis, marking the fastest increase in over nine years since April 2012.

Foreign capital worth 4.59 billion dollars flowed into the South Korean bond market in May, maintaining a foreign fund inflow for the fifth consecutive month.

Premium on credit default swap (CDS), which gauges credit risk for the five-year government bonds, averaged 19 basis points in May, down 2 basis points from the previous month.

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