Citibank: The outflow of foreign capital from the South Korean stock market is likely to continue
Golden Finance July 1st | Citigroup pointed out that although the outlook for South Korea's current account surplus has improved, the trend of capital outflows from the South Korean stock market, dominated by foreign investors, may still continue. Citigroup economist Jin-Wook Kim wrote in a report that driven by portfolio rebalancing and profit-taking, outflows from foreign equity investors accelerated to $30.5 billion in June, compared to $27.9 billion the previous month. As of the end of June, the proportion of foreign investors in the South Korean stock market rose to 38.9% from 32.9% in December last year. Driven by strong growth in semiconductor exports, the bank raised its forecast for the current account surplus in 2026, expecting it to reach 16.4% of GDP, up from the previous forecast of 13.2%. It is expected that the growth rate of semiconductor exports in 2026 will reach about 170%, significantly higher than 22% a year earlier.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Historical data shows that a single rate hike is not enough to end a bull market; a full tightening cycle is the real threat.
Since 1945, the S&P 500 has experienced 12 bear markets with declines of over 20% and 4 deep corrections ranging from 18% to 20%. Among them, six occurred directly after interest rate hikes that triggered economic recessions, while two other cases had no relation to either rate hikes or recessions. Goldman Sachs believes that the market has already priced in multiple rate hike expectations; Morgan Stanley warns that rising yields could trigger a market correction; JPMorgan is more focused on oil prices and corporate earnings.
Focus Graphite Establishes CA$2 Million Revolving Credit Facility With CIBC
Sky Harbour CFO Francisco Gonzalez acquires $10,080 of common shares
Amerigo Resources declares Cdn$ 0.21 per share performance dividend
