Foreigners became net buyers of South Korean stocks last month, snapping their five-month-long selling spree, due to optimism about the recovery of the global economy, the financial watchdog said Thursday.

Overseas investors bought 3.8 trillion won ($3.71 billion) worth of local shares in April, a turnaround from the 1.2 trillion won net sell-off a month earlier, according to the Financial Supervisory Service.

Their portion of stock ownership stood at 32.1 percent, worth 424.2 trillion won, slightly up from 31.9 percent in March, said the watchdog.

The FSS said foreigners’ investment sentiment was boosted by stock market rallies in emerging countries and the U.S. Federal Reserve’s move to reduce market uncertainty by outlining its tapering approach.

As of end-April, U.S. investors bought more shares than they had sold, logging a monthly net buying of 1.2 trillion won on the Seoul bourse. Investors from China and Luxembourg trailed behind with a net 700 billion won and 600 billion won, respectively.

Britain-based investors were the biggest sellers, extending their selling streak for six straight months, offloading a net 800 billion won worth of local shares in April. (Yonhap)