Amid a steep market decline triggered by considerations over synthetic intelligence (AI) inventory valuations on Nov. 5, investor deposits within the South Korean inventory market elevated by greater than 1 trillion gained (roughly $688.9 million) in a single day, hitting an all-time excessive. In the meantime, short-selling transaction worth additionally reached its highest degree in two years and three months.
In line with the Korea Monetary Funding Affiliation on Nov. 6, investor deposits totaled 88.27 trillion gained as of the day prior to this, up 1.44 trillion gained from the day earlier than, marking a document excessive for the third consecutive day. This represents a roughly 55 % enhance from 57.06 trillion gained in the beginning of the yr on Jan. 2. Investor deposits confer with funds buyers go away in securities accounts to purchase or promote shares and are labeled as standby funds for the inventory market. They typically enhance according to expectations for a inventory market rally. The overall transaction worth within the KOSPI market on the day prior to this reached 29.11 trillion gained, the very best degree in about two years and three months since July 26, 2023, when it stood at 36.35 trillion gained.
When the index plunged as a lot as 6 % throughout intraday buying and selling on the day prior to this, short-selling exercise betting on additional declines additionally surged. The mixed short-selling transaction worth within the KOSPI and KOSDAQ markets totaled 1.91 trillion gained, together with roughly 1.58 trillion gained within the KOSPI market alone. This was the most important quantity since 2.36 trillion gained on July 26, 2023, when excessive volatility occurred as a result of aftermath of the secondary battery theme increase.
By investor kind, international buyers accounted for 67 % of the overall with 1.28 trillion gained in short-selling, adopted by establishments with 612 billion gained, representing 32.1 %. Particular person buyers accounted for less than 18.3 billion gained, lower than 1 % of the overall.
Lee Woong-chan, a researcher at iM Securities, mentioned, “Whereas international buyers started to exit the home inventory market on the finish of final month, particular person buyers’ sentiment has grown stronger,” including, “There has clearly been short-term overheating available in the market, and AI-related investments might want to deal with considerations about fundraising, financial polarization, rising funding prices, and energy shortages going ahead.”
