Overseas investors were on buying spree with Korean stocks and bonds despite global uncertainties due to the recent British vote to leave the European Union and Korea’s decision to deploy the U.S. Terminal High Altitude Area Defense (THAAD) missile defense system.

According to data from the Financial Supervisory Service on Sunday, foreign investors purchased Korean stocks worth 4.1 trillion won ($3.7 billion) on a net basis in July, extending their buying streak from June. The U.K. was the largest foreign investor of Korean stocks, snapping up 785 billion won worth of local stocks, followed by Germany with 770 billion won, Luxemburg with 747 billion won, the U.S. with 732 billion won and the Cayman Islands with 489 billion won in July. Chinese investors also bought a net 32 billion won worth of stocks despite the rising tensions between Korea and China due to the Seoul’s recent decision to have the American anti-missile defense system.

On the other hand, French investors were the largest net seller of Korean stocks worth 197 billion won, trailed by Canadians who sold a net 109 billion won, Qataris of 89 billion won and Japanese of 85 billion won, according to the data.

As of last month, foreign holdings of Korean stocks accounted for 29 percent of the total market capitalization amounting to 456.2 trillion won. The U.S. was the largest holder with 182.868 trillion won and the U.K came second with 32.584 trillion won. Luxemburg (28.15 trillion won) and Singapore (28.33 trillion won) was the third and fourth largest holder of Korean stocks, respectively.

The data also found that foreign investors purchased 600 billion won in Korean bonds on a net basis in July. By region, Asia’s net purchasing was the largest one with 500 billion won worth of local bonds while Europe and the Middle East recorded a net buying of 263.9 billion won and 35.8 billion won, respectively. Asian investors held the highest of 38.6 trillion won or 39.8 percent in the total foreign holdings of Korean bonds followed by Europe with 34.4 percent or 33.3 trillion won.

By Chae Jong-won

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]