[Graphics by Song Ji-yoon]
Retail investors’ monthly stock trading value hit a fresh record high in June in South Korea as they were riding on the investment boom driven by ample liquidity following the introduction of a series of aggressive fiscal and monetary policy measures to prop up the economy hit by the COVID-19 pandemic.
According to Yuanta Securities on Monday, individual investors accounted for 68 percent of total trading volume in the main bourse Kospi between June 1 and 26, the largest since 2010.
In particular, retail investors’ transaction value during the cited period reached a fresh record high of 181.4 trillion won ($151.7 billion). The previous peak was 145.09 trillion won in April.
The brokerage analyzed that the hike in retail investors’ stock trading was largely backed by ample liquidity, noting a growth in securities market funds such as investors’ deposit, repurchase agreement balance, and credit loan balance.
Funds available for securities investments totaled a record high of 146.75 trillion won as of June 25, according to data from the Korea Financial Investment Association.
Kim Kwang-hyun, a researcher at Yuanta Securities, said the country’s stock market has been largely lifted by ample liquidity and retail investors. There should be an upgrade in profit forecast and earnings surprise to support further gains in stocks, he added.
By Ahn Gab-seong and Lee Eun-joo
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]