[서울신문] Institutional 1 trillion net selling… The power of Donghak ants contained in Article 1

New Year’s Day KOSPI 2900

Private Investors, Institutional Profit-making Acquisition
Delays in transaction orders due to crowded access to some securities companies
Leading the rise of large-cap stocks such as batteries, secondary batteries, and semiconductors
“View of 3300 ships… Second bull market after short-term adjustment”

The reason that the KOSPI recorded an all-time high of 2944.45 from the first trading day of the new year on the 4th was due to the so-called’Donghak Ant’ (individual investor)’s unstoppable buying trend. In the financial investment industry, there is also a positive outlook that the buying trend of individual investors will continue for a while and rise to the 3300 level.

On this day, the institution sold more than 1 trillion won in net sales to realize profits, while individuals bought more than 1 trillion won and foreigners more than 80 billion won, respectively, leading the KOSPI rise. In particular, individuals did not care about the movements of institutions and foreigners, including net purchases of 2.2 trillion won on the last trading day (30th) of last year, and net purchases of 1 trillion won again that day. In some securities companies, transaction orders were delayed due to crowded personal access.

Seo Sang-young, a researcher at Kiwoom Securities, said, “In the early stages of the market, the desire to realize profits increased, and while institutional and foreign sales came out, there was a decline. “By industry, the automobile, rechargeable battery, and semiconductor sectors led the rise, and the rising and falling stocks showed similar patterns, so it was a clear day for large-cap stocks.”

As such, the observation that individual investors will lead the stock market this year following last year is dominant. Due to the spread of Corona 19, the money released by the government on the market to boost the economy is inevitably driven to the stock market, and individual investors who have not found a suitable investment place due to rising real estate prices are also entering the stock market.

“Individuals’ active participation in the stock market is not only due to the increase in follow-up sales due to the rise in stock prices,” said Shinhan Investment Corp. researcher Kang Song-cheol. “Real estate is less attractive due to a decrease in real estate holdings due to lending regulations and increased taxation, while the KOSPI dividend yield is on the rise.” It is still lower than during the stock market boom.”

However, experts advised that investors should be cautious about investing in the first half of this year as stock market corrections may come. Lee Kyung-min, researcher at Daishin Securities said, “KOSPI is highly likely to enter the second phase after a short-term adjustment in the first quarter of this year.” Researcher Kang analyzed that “the decline in national risk, Samsung Electronics’ shareholder return policy, and changes in the industrial structure centered on new growth industries are factors that can increase the valuation of the Korean stock market.” He said, “The speed of the (KOSPI) rise and the time to peak,” he said. “As the stock price rises due to the good news of vaccine supply and economic recovery, the time to peak may be faster than expected.” He also said, “Overheating due to the rapid rise, widening interest rate volatility, and extinction of policy expectations may be the cause of the adjustment.”

Reporter Kim Jin-ah [email protected]
Reporter Yoo Dae-geun [email protected]