SEOUL, January 27 (AJP) - South Korea’s stock market has rallied sharply this year, but retail investors are continuing to pour money into U.S. equities, a trend cited by policymakers as a key factor behind recent volatility in the won.
Average daily settlement amounts for U.S. stocks by South Korean retail investors reached $261 million over 15 trading sessions from Jan. 2 to Jan. 23, according to data released on Tuesday by the Korea Securities Depository.
That figure more than tripled from a daily average of $85 million in December and was roughly double the $185 million average recorded in January last year.
Overseas equity investment, which briefly cooled late last year, appears to be accelerating again. Retail investors were net sellers of U.S. stocks on only two of the 15 trading days this month, compared with nine days of net selling out of 22 sessions in December, the data showed.
Analysts said confidence in U.S. markets has remained resilient despite the domestic rally, while recent stabilization in the foreign-exchange market has supported investor sentiment.
Some analysts said further buying of U.S. stocks could lie ahead, pointing to elevated foreign-currency deposits as evidence that investors have already secured dollar funds. According to the Bank of Korea, resident foreign-currency deposits at domestic foreign-exchange banks reached a record $119.43 billion at the end of last year.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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