It was found that Korean individual investors and institutional investors such as’Seohak Ant’ earned more than 60 trillion won last year through overseas stock and fund investments. However, there is growing concern that US stock prices are being adjusted due to a short-term surge and that if interest rates are raised, losses may occur.
The Bank of Korea announced on the 19th that the balance of equity securities such as overseas stocks and funds held by individuals and institutions at the end of last year through the’International Investment Sheet at the end of 2020′ was counted at $453.5 billion. Compared to the end of 2019 ($344.7 billion), it increased by $108.8 billion. It is the largest since 2010 when statistics were written based on the annual growth rate.
There are two main reasons for the surge in overseas equity securities balances. As securities companies improved their foreign direct investment services and diversified investment destinations by individuals and institutions, the number of stocks they bought increased significantly. This amount was 53.1 billion dollars last year. Second, the valuation gain was $55.8 billion (about 61,737 trillion won) as the US NASDAQ and others surged.
A BOK official said, “It is not possible to distinguish how much net purchases of individuals and institutions are each and how much the valuation gains by subject are,” but said, “We believe that direct purchases by individuals and indirect investments through funds have had a great impact.”
Tesla stock price 743%↑… Money earned by Seohak ants and institutions, twice the operating profit of Samsung Electronics
Earned 62 trillion won in overseas stock investment last year
The money that Seohak Ant and institutional investors earned from investing in overseas stocks and funds last year is a record high. The valuation gain alone amounted to 61,737 trillion won. It is about 36% more than 45,374 trillion won in 2019. This is almost twice the operating profit of Samsung Electronics (35 trillion 993.9 billion won). In particular, if Tesla was purchased early last year, it was found that it made more than 700% profit.
According to the Korea Securities Depository on the 19th, the US Tesla (US$3.171 million, 3,325 trillion won) was the first to fifth-largest overseas stocks in net purchases by Seohak ants and institutions last year. The net purchase amount of Tesla was higher than that of Apple in second place ($1.89.96 million) and Amazon in third place ($83.31 million) combined.
Behind these stocks are Nvidia ($67.76 million), Microsoft ($44.407 million), Hasbro ($4,741 million), and the Listed Indices Fund (ETF) Invesco Trust QQQ (3) following the NASDAQ 100 Index. It was $98.28 million), Alphabet ($389.37 million), Nikola ($33.1 million), and Boeing ($2549.01 million).
Many of the top 20 net buying stocks were NASDAQ. Bandai Namco Holdings ($176.7 million), which has a Japanese game subsidiary, and SMIC, a Chinese semiconductor company ($17.67 million), were also included.
Tesla jumped 743.3% last year alone. Between the last year’s low on March 18 ($72.24) and last year’s high on December 31 ($705.67), the yield reached 876.8%.
Apple (80.7%), Amazon (72.4%), and Nvidia (121.9%), which are second to fourth in net buying, nearly doubled last year. Microsoft rose 38.4%. Seohak ants, who intensively bought technology stocks listed on the NASDAQ market, made good profits.
This year too, Seohak ants’ love for technology stocks continues. Until the 18th this year, Tesla ($1,047.99 million) was the No. 1 net purchase of Seohak ants. This was followed by Apple ($649.62 million), TSMC ($291.04 million), Arc Innovation ETF ($24.08 million), and Baidu ($21,354 million).
However, the returns for these stocks this year are not good. Tesla’s closing price on the 18th ($787.38) fell 10.8% from the all-time high on January 26th ($883.09). Apple fell 2.2% by the 18th this year. Compared to the 26th, the highest point this year, it fell 9.3%. The closing price of the Ark Innovation ETF also continued to be sluggish, dropping 4.7% from the 12th, the highest point this year. Lee Hang Holdings, which has been bought by a lot of Korean ants, fell in half compared to the peak as it was overwhelmed by controversy about inflating earnings. For this reason, securities experts believe that it will be difficult to expect the return on overseas investment this year as much as last year.
Reporter Kim Ik-hwan [email protected]