Individual 1 yen net purchase, foreigners also join
Hyundai Motor Company, Samsung SDI, SK Ino, etc.
Future car-related stocks rise sharply
On the 4th, the first stock trading day of this year, the KOSPI index crossed the 2900 line for the first time in history. If only 1.9% rises, the KOSPI index will exceed 3,000 units. Increasing liquidity and weak dollar, plus the growth potential of Korean companies, led the Korean stock market to rise the most among Asian markets.
On this day, the KOSPI index increased 2.47% and ended at 2944.45. In addition to the net buying of individuals, even foreigners turned to buying, increasing the rise. Individuals and foreigners net bought 1.28.6 billion won and 89.2 billion won in the securities market, respectively. Foreigners net sold nearly 150 billion won at the beginning of the market, but turned to net purchase in the afternoon. The KOSDAQ index also rose 0.95% to 977.62. If the KOSDAQ index rises only 3%, it will cross the 1000 line.
Large stocks led the market. Among the top 20 stocks by market capitalization, 16 stocks rose. Samsung Electronics (2.47%) SK Hynix (6.33%) and LG Chem (7.89%) all climbed in the first to third place in the market cap.
Future car-related stocks surged. Hyundai Motor Company (8.07%), Hyundai Mobis (12.33%) and Samsung SDI (6.85%). SK Innovation surged 21.58%. It is an analysis that in the new year, the growth potential of future cars has emerged again, and foreigners are buying. Ko Tae-bong, head of the Hi Investment & Securities Research Center, explained that “the atmosphere is re-evaluating Korean companies with high competitiveness in the future.”
On this day, the KOSPI index rose the most among major Asian stock markets. China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index rose less than 1%. The Taiwanese Traceability Index, which has risen the most after Korea, has an increase of 1%. Japan’s Nikkei 225 Index fell.
New Year’s Day 1 兆 lived ants… KOSPI market cap exceeded 2,000 trillion
Individuals net purchase of 1 trillion KOSPI
At 10 am on the 4th, the first stock trading this year began. From the beginning of the market, private investors have been buying and selling. As soon as the market opened, individuals net bought stocks worth hundreds of billions of dollars. The system of some securities companies caused problems due to the heavy transaction. Users of NH Investment & Securities’ Mobile Trading System (MTS)’Tree’ could not buy or sell stocks for about 40 minutes in the beginning of the market. An official of the company explained, “Some work was delayed due to the rapid increase in stock trading at the beginning of the market.” KB Securities also encountered an error that delayed access to the home trading system (HTS) and MTS at the beginning of the market. The stock market, which hit a record high last year, started hot in 2021.
From Donghak Ant to Donghak Shareholder?
The market heat is also confirmed by numbers. On that day, an individual net bought 1,285 billion won in the securities market and 377 billion won in the KOSDAQ market. The KOSPI index ended at 2944.45, up 2.47% on the back of individual purchases. On that day, individuals net bought shares of Samsung Electronics (including preferred stocks) of over 800 billion won. In addition, SK Biopharm, Celltrion, and Celltrion Healthcare, whose stock prices fell sharply on that day, were also aggressively bought.
Seo Sang-young, a researcher at Kiwoom Securities, said, “At the beginning of the market, profit-taking sales by foreigners and institutions came out, but the individual buying tax digested them, and the KOSPI crossed the 2900 line.” The liquidity market, which led the stock market rally last year, continued on the first trading day of this year.
Another number is security deposits. According to the Financial Investment Association, as of the end of last year, the balance of investor deposits at domestic securities companies was recorded at an all-time high of 65,623.3 billion won. Investor deposits are money that investors leave in their securities accounts to buy stocks, and they can be said to be’stock market peripheral funds’ waiting to enter the market. It is said that an individual who recorded a purchase tax of over 63 trillion won in the domestic stock market last year is looking at an opportunity to buy more by putting more funds in the account.
To the era of the KOSPI market cap of 2000 trillion won
The corporate value has grown more than ever thanks to liquidity, earnings improvement, and economic recovery expectations. The market capitalization of the securities market on the 4th was 2028 trillion 644.4 billion won. The value of companies listed on the securities market exceeded 2,000 trillion won for the first time ever. Compared to last year’s first trading day (1461 trillion 4240 billion won), it surged 38.81%.
More and more people are investing in debt in anticipation of a rise in stock prices. Some point out that a surge in credit balance can be a potential risk. The balance of credit transaction loans on the last trading day of last year amounted to 19,229.6 billion won in the securities market and the KOSDAQ market combined. Although it is less than the all-time high (19,453.6 billion won) recorded on the 24th of the same month, stock prices predict that the credit balance will exceed 20 trillion won within this month. “Credit trading investment is a kind of leveraged investment,” said Hwang Se-woon, a researcher at the Capital Markets Institute. “When the stock price rises, the rate of return doubles, but when the stock price falls, the individual has to take care of the interest expense.” did.
The condition of the 3,000-era stock price
If the stock price rises only 1.8%, it will hit 3000. Some argue that the market must confirm another unprecedented figure in order for the KOSPI to reach the 3000 line. Kyobo Securities Research Center Director Kim Hyung-ryul said, “The KOSPI index exceeds 3,000 points, and in order to maintain this, the conditions for both earnings and liquidity markets must be established.” Center chief Kim suggested an annual export growth rate of 8%, China’s economic growth rate of 8%, and an investor deposit of 80 trillion won as a condition of continuing the KOSPI index’s bullish market. This means that the stock market can’level up’ one step further only when the’three beats’ of economic recovery and global economic conditions meet, as well as the capital around the stock market.
Reporter Yoon Sang Ko/Beomjin Jeon [email protected]