▲ Trends in trading value over three months in the securities market. Data provided = Financial Investment Association
Amid the booming domestic stock market, the volume of trading and investment deposits, which were record-high in history, is rapidly decreasing this month. Stock market experts predict that the stock market will continue to adjust for the time being when looking at the trends in trading value and investment deposits.
According to the Korea Financial Investment Association on the 8th, the trading value of the securities market, which recorded 44,433.8 billion won on the 11th of last month, fell to 19 trillion won this month. On the 2nd, the volume of the transaction amount dropped to 19.143.9 billion won, but rose to the 20 trillion won on the 3rd and 4th, and then fell back to 19,789.8 billion on the 5th.
Investor deposits (excluding deposits for exchange-traded derivatives transactions), which have the characteristics of stock market funds, recorded an average of 68,952.8 billion won in January, and jumped to a maximum of 74,455.9 billion won last month. However, as of the 4th of this month, it recorded 66 trillion won, a sharp drop of about 8 trillion won in 17 trading days from a record high of last month.
Experts pay attention to the direction of trading value and investment deposits, which can gauge the power of the market, and predicted that the stock market will continue to adjust for the time being.
Lee Kyung-min, a researcher at Daishin Securities said, “Even when the 3100 line rebounded last week, the transaction value remained at 20 trillion won, and on the 5th it even dropped to 19 trillion won.” It suggests that it has an upper hand.”
He added, “From August to October last year, the KOSPI reached a short-term high at the 2450 level, and the trading value showed an increase, and in early November it started with a rebound with the increase in trading value that exceeded the average on the 60th. It predicted that the short-term trend will be determined by whether the transaction value rises or falls, accompanied by more than 24 trillion won.”
▲ Trend of 3-month investor deposits. Data provided = Financial Investment Association
Whether the stock market’s investor deposits increase is important as to whether there is a possibility that the strength of purchases by individuals who were the main players of the January bull market will be maintained. However, this is unlikely as credit loan regulations are tightened.
Lee Jae-seon, a researcher at Hana Financial Investment, said, “One of the reasons for the increase in deposits in January was likely due to partial demand before the government’s credit lending regulations were tightened. However, from last week, the banking sector began to lower its credit limit. Said.
If the intensity of individual purchases, such as in January, is not maintained, the index can increase in a trend when the supply and demand of foreigners improve. However, foreigners are net selling about 5 trillion won in the stock market alone until the 5th of this month.
In-hwan Ha, a researcher at KB Securities, said, “Most of the net sales of foreigners came from US funds. Considering the flow of won-dollar exchange rates, the time when US funds can flow back into the Korean stock market will be after May.” The additional sell-off will continue.”