Seoul [South Korea], August 3: Foreign investors recorded their highest net purchases on South Korea's benchmark index in 17 months last month, data showed Sunday, according to Yonhap.
Offshore investors net purchased 6.28 trillion won (US$4.52 billion) worth of stocks on the benchmark Korea Composite Stock Price Index (KOSPI) in July, marking the largest monthly net buying since February 2023, when the figure reached 7.858 trillion won, according to the Korea Exchange (KRX).
The July amount was also 2.3 times greater than June's net buying of 2.69 trillion won.
Offshore investors had turned to net selling in August 2024 and continued the trend for nine consecutive months through April.
In May, however, they shifted to a net buying mode with around 1 trillion won in purchases and have maintained a net buying position for three months in a row through July.
The surge in foreign buying is mainly attributed to optimism about the new government's stock market stimulus measures and hopes for a tariff deal between South Korea and the United States.
Investors also welcomed the news that top-cap Samsung Electronics signed a large-scale supply deal with Tesla.
Tech giant Samsung Electronics was the top stock bought by foreign investors in July, with net purchases totaling 3.49 trillion won, accounting for 56 percent of the total foreign net buying on the KOSPI.
Major shipbuilder Hanwha Ocean was the second most purchased stock by foreigners, with net buying amounting to 858 billion won, amid hopes for stronger cooperation with the U.S.
Supported by the strong foreign buying, the KOSPI rose 5.7 percent last month.
Source: Emirates New Agency
