Seoul: Foreigners bought South Korean stocks for two straight months in June due to expectations for the launch of a new government, financial watchdog data showed Thursday. Offshore investors purchased a net 3.08 trillion won (2.2 billion U.S. dollars) worth of domestic listed stocks in June, remaining net buyers since May.

According to Namibia Press Agency, foreign investors were net buyers in the main bourse KOSPI, but they shifted into net sellers in the smaller KOSDAQ market. The foreign stock purchase came amid expectations for the stabilized political situation. President Lee Jae-myung took office on June 4 following a snap election, caused by the ouster of his predecessor from office over a botched martial law bid last December.

The central bank cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after lowering it by the same basis points in October and November last year. Foreign holdings of local listed stocks totaled 863.4 trillion won (629.6 billion dollars) at the end of June, taking up 27.4 percent of the total market capitalization.

Overseas investors snapped up a net 17.71 trillion won (12.9 billion dollars) worth of local listed bonds in June. Given maturing debts worth 14.09 trillion won (10.3 billion dollars), foreign net investment in the local bond market stood at 3.62 trillion won (2.6 billion dollars) last month. The foreign ownership of domestic listed bonds amounted to 304.4 trillion won (221.9 billion dollars) at the end of June, accounting for 11.3 percent of the total listed bonds.