SEOUL, May 5 (Yonhap) - Foreign investors net sales expanded its shares on the Korean stock exchange this year, while geopolitical risks and concerns that a weaker yen could harm South Korean exporters, the data showed Sunday.
Foreign investors sold a net 5.16 billion dollars between January and April, according to data by the Korea Center for International Finance.
Foreigners bought more shares than they sold in five Asian countries like Taiwan and India, buying a net $ 10.56 billion worth of stock from seven Asian countries like South Korea and Thailand, he said.
The main stock index has fallen South Korea 1.7 percent so far this year, with a decrease of 2 percent in March and 1.07 percent in April.
Market analysts said the weak performance of the Seoul bourse was primarily due to increased geopolitical risks and growing concerns that a weaker yen would undermine corporate profitability of Korean exporters.
Tensions between the two Koreas used to have a limited impact on the stock market of South Korea, but North Korea increasing war rhetoric in recent months, foreign investors have shown sensitive responses, said analysts.
A weaker yen has unnerved local policymakers, as it makes the prices of South Korean products are relatively more expensive in foreign markets compared to its Japanese rivals.
