Seoul: Investors withdrew more than 60 billion won (US$42.9 million) from South Korea's equity-based funds as the once bullish market began to slow, industry data showed Wednesday. Assets under management by 1,049 equity-based funds in South Korea fell by 61.3 billion won over the six days from August 12-19, according to data from market watcher FnGuide Inc.
According to Yonhap News Agency, the net outflow of funds reached 95.6 billion won on Tuesday alone, as the Korean stock market closed lower for the second consecutive day ahead of the U.S. Federal Reserve's annual symposium later this week. Conversely, assets under management in bond-based funds rose by 661.1 billion won during the same period.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped by 38.35 points, or 1.2 percent, over the six-day timeframe, as reported by Yonhap Infomax. Analysts predict that investors will maintain a cautious approach in anticipation of significant events set for later in the month, including the South Korea-Japan summit scheduled for Saturday.
Na Jeong-hwan, an analyst from NH Investment and Securities Co., noted in a report, "Given the number of uncertain events on the horizon, profit-taking will continue, even without any specific negative factors."