Individual Investors Buy Stocks Worth 1.7 Tril. Won on May 4
The Korea Composite Stock Price Index (KOSPI) fell 2.68 percent to close at 1,895.37 on May 4. Individual investors bought stocks worth 1.7 trillion won or so to post the largest net buy since 1998 whereas foreign and institutional investors net-sold stocks worth 940 billion won and 800 billion won, respectively.
According to experts, the decline in index was because of the recent rally. With the COVID-19 pandemic poised to exacerbate the performance of listed companies, the index gained more than 10 percent in April alone and it is becoming burdensome for an increasing number of investors.
The Korea Securities Dealers Automated Quotations (KOSDAQ) index edged down 0.51 percent to close at 641.91 points. Institutional investors’ net selling totaled 83.9 billion won whereas individual and foreign investors’ net purchases were 81 billion won and 7.7 billion won, respectively.
In the meantime, the Korea Financial Investment Association announced on May 4 that individual investors’ outstanding credit loans in the stock markets jumped from 6.7 trillion won to 8,981.2 billion won from early last month to April 28. According to the association, this is because more and more individual investors are switching to high-volatility short-term investment.