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The logo of Hugel is seen in this file photo. (Photo: Hugel) |
[Alpha Biz= Ellie Kim] SEOUL, June 16 — Foreign investors pulled out a near-record amount of funds from South Korea’s financial markets in May, while showing diverging investment patterns in key Kosdaq-listed biotech firms PharmaResearch and Hugel.
According to data released by the Bank of Korea on June 15, foreign portfolio investment recorded a net outflow of $26.15 billion in May, marking the second-largest outflow on record. Combined with previous months, foreign investors have posted net outflows for four consecutive months, with cumulative outflows reaching $70.2 billion so far this year.
Equity markets saw the sharpest decline, with foreign investors withdrawing a record $31.83 billion from stocks in May alone, extending a five-month streak of net selling. In contrast, bond markets attracted net inflows of $5.68 billion, supported by demand linked to global bond index tracking and rising yields.
Despite the broader sell-off, foreign investors showed mixed trading patterns in regional biotech stocks. According to the Korea Exchange, they sold a net 46.1 billion won worth of PharmaResearch shares, while purchasing 28.7 billion won worth of Hugel shares during the same period.
The selling in PharmaResearch is widely attributed to profit-taking following recent stock price gains, while buying interest in Hugel appears to reflect expectations for earnings growth and global market expansion.
Overall, while foreign investors engaged in large-scale profit-taking across the broader Korean equity market, their activity in leading Kosdaq biotech stocks reflected a more selective approach, highlighting diverging views even within the same sector.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
