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| Finance Commissioner Eun Seong-soo is announcing the partial resumption of short selling at the joint briefing room of the Seoul Government Complex in Jongno-gu, Seoul on the 3rd. The Financial Services Commission has decided to extend the ban on short selling, which is scheduled to end on March 15, until May 2, and partially resume short selling for stock index constituents of KOSPI 200 and KOSDAQ 150 from May 3rd. (Provided by the Financial Services Commission) 2021.2.3/News 1 |
On the 4th, the first trading day after the financial authorities announced a short selling plan, the KOSPI index fell below the 3100 line. In particular, the decline of the large-cap KOSPI 200 and KOSDAQ 150 indexes is relatively large. As a result, analysis comes out as to whether the financial authorities decided to resume short selling of large-cap stocks from May 3rd.
According to the Korea Exchange, the KOSPI index is trading at 3073.71, down 55.97p (1.79%) compared to the previous day at 2 pm on the day.
KOSPI large-cap stocks (-1.96%), KOSPI mid-caps (-1.39%), and KOSPI small-caps (-0.08%) showed the largest decline. In particular, the KOSPI 200 index, which is scheduled to resume short selling, is falling more than 2%.
Excluding the KOSPI 200, the KOSPI index was only 3461.89, down 0.42% from the previous day. According to the government’s decision on the previous day, the ban on short selling for small and medium-sized stocks other than the KOSPI 200 will remain indefinitely.
Among the stocks included in this index, EID (24.37%), Hyundai Corporation Holdings (24.34%), Daehan Steel (16.67%), Phillux (13.86%), Hwashin (13.76%), Daehan Chemical (13.54%), Hyosung Heavy Industries (10.96%) and the like indicate a double-digit increase.
On the other hand, the KOSPI 50 index, which is composed of the top 50 stocks by market capitalization, fell 2.12% to 2938.17. Among them, LG Electronics Netmarble (-5.15%), NCsoft (-4.76%), SK Hynix (-4.23%), Hankook Tire & Technology (-4.19%), Hanon Systems (-3.98%), Hyundai E&C (-) 3.90%), Naver (-3.37%), Lotte Chemical (-3.24%), and so on.
In the KOSDAQ market, the decline in large-cap stocks was larger than that of small- and medium-cap stocks. At the same time, the KOSPI 150 decline was 1.70% (25.46p), exceeding the KOSDAQ decline (-1.16%).
As short-selling resumes, the KOSPI 200 and KOSDAQ 150 indexes fall beyond the overall index, there are also concerns that short selling may instigate a share price decline.
Regarding this, securities-related institutions such as the Korea Exchange said, “There has been no theoretical or empirical validity of the claim that short selling causes stock prices to fall,” and said, “After the period and resumption of short selling bans in countries that prohibited short selling due to Corona 19. “There was no significant difference between the stock price increase rate and the share price increase rate of countries that were not banned for the same period,” he refuted.