Korea s benchmark KOSPI displayed the lowest rate of return this year out of G-20 countries benchmark indexes, except for only Russia. According to data from the Korea Exchange (KRX), the KOSPI s annual rate of return this year ― a comparison between the closing price of the first trading day in January and the closing price of Dec. 20 ― stood at minus 21.93 percent.
Foreign investors have returned to a selling spree of Korean shares for the first 12 days of December amid unceasing fears of the U.S. Federal Reserve s monetary tightening. This is in contrast to their recent buying of local shares over the past two months, which raised hopes the benchmark KOSPI regaining momentum for a rally in lockstep with the final cycle of rate hikes.
South Korean stocks fell nearly 2 percent on Friday, snapping a three-day winning streak as foreigners and institutions dumped shares after recent rallies fueled by optimism over a possible downshift in U.S. rate hikes. The local currency inched down against the U.S. dollar.