The Donghak Ants' Relentless Buying Forgetting 'Fear'... Scooping Up All Institutional and Foreign Shares

Aggressive Net Buying of 13 Trillion Despite Global Tightening and War Headwinds

[Asia Economy Reporter Lee Seon-ae] At the beginning of the year, Donghak Ants are running relentlessly in the 'fear market.' Despite various adverse factors such as global tightening, the Russia-Ukraine war, and the stock market faltering, they are responding with aggressive buying. While institutional and foreign investors have been selling continuously this year, individual investors' solo 'buying' is becoming increasingly prominent. There is even a view that the Donghak Ant Movement, which appeared after the COVID-19 pandemic in 2020, is being reenacted.

According to the Korea Exchange on the 18th, from the first trading day of the year, January 3, to March 17, individuals net purchased 9.697 trillion won in the KOSPI market. During the same period, institutions and foreigners sold 4.813 trillion won and 5.199 trillion won respectively, making this a net purchase situation. The KOSDAQ market shows a similar trend. During the same period, individuals net purchased 3.627 trillion won, while institutions and foreigners net sold 704 billion won and 2.768 trillion won respectively.

This aggressive net buying by individuals stems from the 'pandemic stock market learning effect.' The learning effect of the KOSPI plunging to 1400 due to COVID-19 and recovering to 2000 in just three months is attracting ants to the stock market. After the outbreak, individuals net purchased 22.061 trillion won over three months (March 2 to May 29, 2020). Additionally, the current market is in an oversold zone, perceived as a 'bargain sale,' fostering an investment sentiment not to sell without practical benefit.

Researcher Park So-young of Shin Young Securities explained, "Risk indicators have all reached the oversold area, which has only happened during the 2011 European debt crisis, the 2015 emerging market crisis, and the 2020 COVID-19 crisis," adding, "Currently, the KOSPI is an attractive stock price."