Although KOSPI was pushed at the end of the market on the 6th, it crossed the long-awaited 3000 line for the first time in the market. In the meantime, he has taken his first steps on a’road that has not been visited’.
On this day, the KOSPI index reached 3001.29, a 10.72 point (0.36%) increase from the trading day immediately after the opening of 9:02 am, and then hit 3027.16 in 9 minutes.
Afterwards, a common revolt between the forces of private investors, also referred to as’Donghak ants’ over Hill 3000, and the forces of the armed forces united by foreigners and institutional investors continued throughout the day.
In the end, the naval force prevailed, and the closing price ended at 2968.21, down 22.36 points (0.75%).
Although it was not able to keep the 3000 line at the closing price, just touching it in the middle of the day deserves a record of history that will be discussed in the Korean stock market. The reason that the KOSPI exceeded the 3000 line is because it is a record for 13 years after breaking the 2000 line.
As such, the rapid rise of the KOSPI every day is analyzed as a result of enormous liquidity due to low interest rates and active participation of individuals in the stock market, also called’Donghak ants’.
An official at Shinhan Bank’s investment-related department said, “It is difficult to give meaning to each number, but the market capitalization is 2100 trillion won, and the nominal GDP in 2020 is 1,900 trillion won, and the market capitalization to GDP exceeded 100%.” It can be interpreted as the beginning of a new paradigm that is difficult to explain.
‘Cooperative’ created by individual + abundant liquidity, exceeded KOSPI 3000
Market officials diagnosed that the KOSPI exceeded 3000 as a joint venture created by changes in individual investment perspectives and abundant liquidity.
An official of Woori Bank diagnosed that “the KOSPI 3000 breakthrough has not been taken,” and “It can be seen that the time has come to invest in stocks rather than depositing in banks due to the prolonged low interest rate.”
An official of Hana Bank said, “The reason why KOSPI has risen greatly is because individual investors in Korea have changed their minds about investment.” It seems to be,” he said. The official added, “Although the economy is still sluggish, the fact that the stock price continues to hit a historical high is thought to be a liquidity effect resulting from the actions of individual investors.”
A Shinhan Bank official also pointed out, “As liquidity increased and the value of money fell accordingly, the perception that stock investment was essential to defend against this was at work.”
3000 is’shiny’ or’will it continue’
Future prospects are mixed.
An official of Hana Bank predicted, “Even if there is abundant money, the stock price will be difficult to rise if the demand for domestic stocks decreases, but domestic individual investors have changed their minds about stocks, so they will settle at the KOSPI 3,000 line.”
Related Articles
[속보] Breaking the KOSPI 3000 line…3005.59
[지디팟] 2020 amid Corona 19 crisis… House price-stock prices all skyrocket
Jin Ok-dong “You can’t stick to traditional finance”
FOUNT expands its scope with investment discretion… Launches global ETF
A Shinhan Bank official said, “When evaluating by corporate performance, etc., it seems that in order to settle the 3000 line, corporate performance must be supported, and factors such as improvement of governance structure and dividend expansion must be added. It is difficult to evaluate with optimism,” he judged.
An official at Woori Bank said, “Individual stock investment is also linked to credit loans. Since household credit loans are limited this year, there is a possibility that the rate of inflow of funds into the stock market will slow down.” Closures, quarantine failures, intensifying trade conflict between the US and China, and lifting of restrictions on short selling in March may trigger greater volatility,” he observed.