Posted November. 05, 2003 22:46,
Octobers net influx of foreign capital brought in by foreign investors into the Korean Stock Market reached $3.4 billion, the largest amount in 43 months.
Foreigners active purchasing of stocks has helped the Korea Composite Stock Price Index reach over the 800 level for the first time in 16 months on November 5.
According to the Bank of Korea on November 5, the net influx amount of foreigners stock investment in October increased to $3.4 billion, $2.11 billion more than the month before. This also is the highest net influx since March 2000 ($3.84 billion) in 43 months.
As a result, the year-to-date net influx amount until October is $9.89 billion, facing the $10 billion dollars amount soon.
Foreigners stock investment capital of $2.8 billion has flowed out from February to April, and $12.411 billion has flowed in during the period of May through October.
With more foreign capital coming in, foreigners have bought 3,355 billion won worth of stocks in October alone and a total of 12,687.7 billion won worth of stocks from May to October this year.
Economist Kim Han-jin of Fides Investment Management analyzed, Due to the economic improvement in the U.S. and expectations about the Chinese effect, foreign investment capital has been moving from bonds to stocks. With the expectation that Asia, including Korea, will experience an increase in exports, it is all flocking in.
Meanwhile at the Seoul Stock Market, the Composite Stock Price Index closed at 805.51, increasing by 9.45 points (1.19 percent), surpassing the 800 level for the first time since July 9, 2002 (801.99).
The same day, foreigners bought a net amount of 176 billion won worth of stocks, continuing the increase for three consecutive days. Compared to this, institutional investors and individuals have respectively sold 95.7 billion won and 20.1 billion won worth of stocks.
Samsung Electronics closed at 480,000 won, an increase of 1,000 won, renewing its best daily record.
Lee Won-gi, Executive Director at Merrill Lynch Securities, prospected saying, Foreign investors have accepted the shares for sale from institutions and individuals, and this enabled the market to reach 800 again. We expect it to further continue without much difficulty.