It is analyzed that it is difficult to induce a’short squeeze’ in the domestic stock market in the stock market, while some domestic individual investors have declared a war against short selling due to the impact of the US GameStop crisis.
Short squeeze refers to a phenomenon in which a short-selling investor closes a short position due to an unexpected share price increase, accelerating the share price increase.
NH Investment & Securities researcher Noh-gil said in a report on the 2nd’Checking the possibility of short squeeze in the domestic stock market’, “In the domestic stock market environment, the size of speculative short selling that will trigger short squeezes is unlikely to be larger than expected, as short selling restrictions continue for nearly one year. It suggests that it can be done.”
Researcher Roh said, “In the past year or so, as new short selling has been restricted, it is estimated that there were not many investors who would have suffered the opportunity cost of continuing loan costs and prolonged short selling.”
He said, “The ratio of short selling balances on KOSPI and KOSDAQ decreased to less than half compared to a year ago, respectively, to 0.3%, but the remaining short selling balance is likely to be a high proportion of market makers or ETF liquidity providers who allowed short selling transactions. “He analyzed.
Short selling transactions by market makers or liquidity providers are for hedging (hedge) purposes, so they should be differentiated from speculative short selling forces that do not have a hedging position.
Researcher Roh also said that in the case of stocks that a domestic private investor rights protection organization has designated to engage in a stock purchase campaign, it should be considered that the ratio of the number of short-selling stocks to the number of stocks in circulation is not high.
GameStop’s ratio of short selling to the number of shares in circulation exceeds 100%, but the ratio of short selling shares such as Celltrion (6.2%), HLB (8.0%), and Helixmiss (10.0%) is still lower than that.
Researcher Roh said, “Although the potential of the stock buying movement is sufficient, it is necessary to keep in mind that there are differences from the US case.” “Related stocks may show an uptrend for the time being due to the supply-demand effect of individual investors’ interest, but “You should lower your eye level.”
/yunhap news
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