Foreign share ownership hits six-year low

Taking a hit: Traders working near a screen showing the Kospi at a foreign exchange dealing room in Seoul. Analysts attributes the foreign dumping of local stocks primarily to the uncertainties from Russia’s invasion of Ukraine. — AP

SEOUL: Foreign ownership of South Korean stocks fell to a six-year low, bourse data shows, as overseas investors preferred safer assets in the wake of the Ukraine crisis and ahead of a widely expected US rate hike.

As of Friday, foreign investors held 666 trillion won (US$538bil or RM2.26 trillion) worth of local stocks on the main Kospi, accounting for 31.86% of the entire 2,091 trillion-won (RM7.09bil) market capitalisation, according to the data compiled by the Korea Exchange (KRX).