foreign securities-February tally

SEOUL, March 10 (Yonhap) -- South Korea's investment in foreign securities doubled last month as the local stock market continued to remain bearish, a securities deposit agency said Sunday.

Local retail and institutions' investment on overseas shares surged to US$713 million in February, compared to $335 tallied a year earlier, according to the Korea Securities Depository (KSD).

Market watchers said the increase came as more investors sought after profitable investment destinations overseas as the local stock market continued to remain dull.

The benchmark Korea Composite Stock Price Index (KOSPI) closed at 2,006.01 on Friday, down 1.24 percent from the first trading session of this year as investors sat on sidelines on economic uncertainties.

In contrast, the Dow Jones Industrial Average advanced 9.38 percent over the cited period, and the NASDAQ composite index also added 7.04 percent on the back of improved housing and jobs data.

Local analysts said South Koreans' investment on overseas shares is expected to increase down the road as the main bourse is anticipated to lag behind global peers due to lack of market momentum.

"Even if the main bourse catches up with the global market, the volatility in the foreign exchange market will still weigh down on local exporters," said Kim Sang-yule, a researcher at Samsung Securities Co.

The data only compiles local residents' direct investments in overseas shares and debts through the securities deposit agency.

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