Foreigners have continued purchasing Korean stocks for five straight sessions for the first time in 21 months.

The buying spree started on Dec. 29 and continued until Tuesday this week. This means foreigners bought over W1 trillion (US$1=W1,293) of stocks in Korea during the five sessions. The sectors foreigners liked most were the steel, electronics and medical supplies industries.

However, experts worry the upturn is not likely continue, because the rise is being attributed to the New Year euphoria. Experts explain that the buying trend is a result of the market normalizing, since it has been some time since Lehman Brothers collapsed last year.

As of November 2008, foreign ownership of Korean stocks fell to its lowest level since the late 90s. Some 29.4 percent of the total value of Korean shares was held by foreign investors in November which amounted to around W163 trillion.

That was the lowest level since 1998, when the country's stock market suffered a massive selloff by anxious foreign investors due to the Asian financial crisis. Foreign ownership of Korean shares surged to over 30 percent by the year 2000. But after topping out at 42 percent in 2004, foreigners started pulling out from Korea.

Experts once again predicted a rollercoaster ride for the exchange rate this year as the continuing global financial turmoil could determine Korea's stock market future.

Arirang News