Hold the 'KOSPI 3000'... Retail Investors Spend 2 Trillion Won as Index Falls to 2990 During Trading

As KOSPI Falls to 2990, Individuals Net Buy 1.6 Trillion KRW in KOSPI Market
Net Buy of 400 Billion KRW 'Alone' in KOSDAQ
Foreigners and Institutions Scoop Up Sold Shares

[Asia Economy Reporter Oh Ju-yeon] On the morning of the 6th, the KOSPI index, which had surpassed the 3000-point mark during trading hours, fell below 2990 after undergoing a process of absorbing sell orders, prompting individual investors to once again support the index's downside by purchasing stocks worth trillions of won. In both the KOSPI and KOSDAQ markets, individuals showed a solo net buying trend, scooping up stocks worth 2 trillion won.

As of 1:44 PM that day, the KOSPI recorded 2988.63, down 0.06% from the previous trading day. At one point, it fell to the 2970 level, widening the decline.

The reason foreign investors and institutions poured out large volumes to realize profits after the KOSPI surpassed the 3000 mark.

[Image source=Yonhap News]

At this time in the KOSPI market, foreign investors sold stocks worth 636.2 billion won, and institutions sold stocks worth 1.0087 trillion won.

On the other hand, individuals fully absorbed the 1.6 trillion won worth of stocks sold by foreign investors and institutions.

Individuals purchased stocks worth 1.6252 trillion won, defending against the index's decline. Unlike foreign investors and institutions realizing profits at the 3000-point level, individuals are continuing a strategy of buying stocks whenever the index falls, based on a strong market outlook for this year.

Since the start of the new year in the Year of the Ox, from the 4th, the stock most purchased by individual investors was Samsung Electronics. On the 4th and 5th, individuals bought Samsung Electronics stocks worth 1.28 trillion won.

The KOSDAQ index also reached the 990 level during the morning session before turning downward. The KOSDAQ index recorded 981.60, down 0.41% from the previous trading day.

However, individuals alone defended the index by purchasing stocks worth 427.5 billion won in the KOSDAQ market. Foreign investors and institutions sold stocks worth 152.8 billion won and 246.4 billion won, respectively, engaging in simultaneous selling.

There is a forecast that the buying momentum of individual investors, who supported the stock market that plunged last year due to the impact of the novel coronavirus disease (COVID-19), will continue this year as well.

Yoon Chang-yong, Head of the Research Center at Shinhan Financial Investment, said, "The current stock price justifies valuation due to low interest rates, and a favorable supply and demand environment such as individual investors and retirement pension funds will continue."

Jung Yeon-woo, Head of the Research Center at Daishin Securities, also said, "With an unprecedented level of liquidity, individual investors have sufficient capacity for additional purchases," adding, "Along with this, if the won-dollar exchange rate stabilizes below the 1100 won level, foreign net buying is also likely to flow in on a structural basis."