Foreign investors are showing signs of moving out of South Korean bonds and into stocks as a strong won makes local equities more attractive, analysts said Sunday.

Offshore investors posted net buying for 11 consecutive days from Aug. 23 to Friday, with their net purchases reaching 3.18 trillion won ($2.91 billion) in the last 14 trading sessions, according to the Korea Exchange.

In contrast, foreigners sold a net 3.08 trillion won in local bonds over the last 14 trading sessions, according to data from the Korea Financial Investment Association.

Market watchers attributed the shift in foreigners’ investment to the strength of the local currency against the greenback.

“Amid the appreciation of the won, foreign investors seem to think that local stocks may yield more than bonds down the road,” said Park Jong-yeon, an analyst at Woori Investment & Securities Co.

Other analysts said foreigners’ net selling of local bonds could have arisen from their attempts to reap foreign exchange profits stemming from the won’s ascent.

The local currency has gained considerably against the U.S. dollar in recent days. The Korean unit finished at 1,093 won against the dollar on Friday, up 5.4 won from the previous session.

It was the first time in four months that the local currency has risen above the 1,100-won level. (Yonhap News)