A bull statue in front of the Yeouido Financial Investment Association, Yeongdeungpo-gu, Seoul. On the 6th, KOSPI made a new history by exceeding 3,000 during the week. News 1
“Why did you start stocking now?
This is the complaining of Mr. Choi, a 34-year-old office worker, that he started his first stock investment with an extra 15 million dollars in early December of last year. Choi, who watched the KOSPI surpass the 3,000 line on the 6th, said, “I regret not being able to enter the stock market earlier than just looking at the savings to receive interest not less than a few pennies.” My coworker who won the jackpot is the one I envy the most.”
On this day, which was like the opening ceremony of the’KOSPI 3,000 Era’, inquiries from the online community where stock information came and went, “Is it not too late to enter now?” After breaking through the 2,200 mark last year, there were a number of individuals who were determined to make a new appearance sooner or later as the prospects that the KOSPI, which has been running without any adjustments, will jump a step further this year. On that day, an official at a securities company said, “The number of new securities accounts opened from the new year is increasing rapidly.”
‘The Age of 3000 Stock Prices’ led by the ant army
Individual investors, who appeared in the worst crisis of 2020 and showed off their enormous financial power, are the protagonists who pioneered the’KOSPI 3,000 era’. The past year’s history of confronting foreigners and institutional investors who ruled the Korean stock market like a home has led the’dream breakthrough’.
Individual investors net bought nearly 3,800 billion won in just three trading days of the new year. During this period, the KOSPI rose 3.3%. Individuals swept 2 trillion won worth in a single day on the 6th when they failed to achieve the closing price of 3,000 (2,968.21). The fact that the KOSPI rose 31% last year thanks to the firepower of individual investors who bought a whopping 47 trillion won worth of money. An official from the securities industry said, “It feels like Season 2 of the Donghak Ant Movement has already begun.”
Following last year, individuals are filling their portfolios with high-end stocks such as Samsung Electronics this year. Only Samsung Electronics stocks (including preferred stocks), bought by individual investors for three trading days since the 4th, amounted to 2.6 trillion won. It is about 70% of the total net purchase of individuals during this period. Samsung Electronics ended at 82,200 won, a 2.03% drop from the previous day due to the combined selling of foreigners and institutions.
Lost liquidity… ants never stop
The securities industry believes that the inflow of personal funds to the stock market is highly likely to continue this year. This is because floating funds that have not found a suitable investment destination due to ultra-low interest rates and strengthening real estate regulations are expected to serve as a support for the domestic stock market this year following last year.
As of the 5th, investor deposits, which are actually stock market waiting funds, are about to exceed 70 trillion won for the first time, reaching 69.4 trillion won. Kiwoom Securities, which is known to have the highest proportion of individual investors among securities companies, opened about 40,000 new accounts a day on the 5th, setting a record for a record every day.
The expectation of a global economic recovery this year, when the Corona 19 vaccination is in full swing, is expected to further boost individual investment sentiment. Hwang Seung-taek, head of Hana Financial Investment Research Center, said, “The current situation, combined with the rich liquidity and anticipation of an economic recovery, is that the basic strength to raise the stock price is that strong.” “We are seeing a high possibility of inflow.”
Concerns about “panic buying… will become a boomerang when adjusting”
However, there are also concerns that individuals who experienced a bull market last year may become intoxicated with a sense of victory and make unreasonable investments. It is a warning that if there is an impatient “panic buying,” which is not a financial method of selecting companies and industries to invest and earn profits from a long-term perspective,’only I can’t be left behind’, the damage may occur during adjustment.
Kim Min-ki, a researcher at the Capital Market Research Institute, said, “In the market for liquidity, especially as the market tends to move largely due to investment sentiment, it is necessary to pay special attention to volatility.” “If you place excessive weight on risky stocks or use leverage to exceed the level of risk tolerance. The blow is inevitable,” he advised.
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