International funding internet inflows decreased in comparison with the earlier month as a consequence of inventory profit-taking and bond gross sales final month.
In response to the “Worldwide Finance and International Alternate Market Tendencies” statistics launched by the Financial institution of Korea on Nov. 13, overseas securities (shares and bonds) funding funds recorded a internet influx of $2.29 billion throughout October. Based mostly on the won-dollar change price on the finish of final month (1,424.4 received), this quantities to roughly 3.2619 trillion received.
Web influx implies that overseas funding funds getting into Korea’s inventory and bond markets exceeded the funds that exited. Following September (+$9.12 billion), internet inflows continued for the second consecutive month.
By securities kind, overseas inventory funds recorded a internet influx of $3.02 billion, whereas bond funds noticed a internet outflow of $720 million.
Inventory funds have maintained shopping for dominance for six consecutive months since Could, whereas bond funds shifted from a internet influx of $4.78 billion in September to a internet outflow.
A Financial institution of Korea official said, “Inventory funds continued internet inflows for six consecutive months as a consequence of sustained world synthetic intelligence (AI) funding sentiment, however the influx magnitude slowed as a consequence of profit-taking following inventory value rises.” The official added, “Bond funds shifted to internet outflows as short-term bond promoting continued, centered on public funds.”
Korea’s authorities bond credit score default swap (CDS) premium averaged 24bp (1bp = 0.01 share level) final month, rising 4bp from the earlier month (20bp).
Throughout October, the typical volatility vary and volatility price (in comparison with the day gone by) of the won-dollar change price had been 5.6 received and 0.39%, respectively, increasing from the earlier month (3.9 received, 0.28%).
