[Photo by Yoo Dae-kil = dbeorlf123@ajunews.com]
Foreign investors are expected to keep selling South Korean stocks for the time being as rising tensions on the Korean Peninsula have further strengthened their appetite for profit-taking, analysts said.
According to data from the Korea Exchange, offshore investors sold a net 2.7 trillion won (2.36 billion US dollars) between July 24, when they turned net sellers, and Thursday. During the 15 trading sessions, foreign investors net-bought local stocks for only three days.
Foreigners' net selling has been driven by their desire to take profits from sharp gains mainly big-cap tech stocks, including top-cap Samsung Electronics Co. Offshore investors sold a net 1.5 trillion won worth of Samsung shares during the cited period, with their net selling of chip giant SK hynix Inc. reaching 552 billion won.
Analysts said escalating tensions on the Korean Peninsula, sparked by North Korea's two intercontinental ballistic missile launches in July, have further stoked foreigners' appetite for profit-taking.
North Korea's threat has sent the South Korean currency tumbling against the US dollar, pouring cold water on foreign investors' sentiment. "The North Korea risk may combine with the won's plunge to put greater pressure on some foreign investors to take profits down the road," said Park Sang-hyun, an analyst at Hi Investment & Securities Co.
But some analysts struck a rather rosy note, saying foreign investors may return to the local stock market after a short profit-taking period, given the low possibility of a US-North Korean armed conflict.
(Yonhap)
reporter
Lim Chang-won
cwlim34@ajunews.com