The balance in margin account, or loans from brokerage houses for stock investment, has topped 14 trillion won ($11.7 billion) for the first time in South Korea amid stock fever among retailers.
The outstanding balance of margin accounts came to 14.05 trillion won on July 24, breaking the milestone level of 14 trillion won in just two weeks since the 13 trillion won threshold was breached on July 10, according to the Korea Financial Investment Association on Monday.
A margin account is an account offered by brokerage firms that allow investors to borrow cash to buy stocks or other financial products. The balance of margin account, especially those held by retail investors, tends to rise in bullish stock market.
Margin account balance at Korean brokerages sank to 6 trillion won in late March when stock markets across the world crashed due to concerns over the COVID-19 pandemic. But the credit balance has been fast rising ever since on retail bargain-hunting.
Korean individuals have been on buying spree as stocks have become cheap after routs in March.
On Tuesday, the main Kospi gained 1.76 percent and closed the day at 2,256.99, and the secondary Kosdaq up 0.83 percent at 807.85. In March, the Kospi hovered below 1,500 level for the first time in 11 years.
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