[Forced Sale Fear] ③ Secondary Battery Stocks Debt Investment Surges to 2 Trillion Won Range

6 Secondary Battery Stocks Among Top 10 Credit Loan Stocks
Brokerages Raise Debt Investment Threshold... Focus on Semiconductor, Shipbuilding, and Transportation Stocks

As the investment frenzy in secondary battery stocks sweeps through, six out of the top 10 stocks with the highest margin loan balances in the domestic stock market were secondary battery stocks. Moreover, the combined balance of these six stocks exceeded 2 trillion won. As the balances accumulated and concerns over forced liquidation grew, securities firms began to implement risk management measures.

According to the Koscom check system on the 4th, as of the 31st of last month, the stock with the highest margin loan balance on the KOSPI and KOSDAQ was POSCO Holdings, with a balance of 582.611 billion won. Following were POSCO Future M (443.693 billion won), EcoPro BM (326.956 billion won), L&F (313.110 billion won), Samsung Electronics (299.370 billion won), and Celltrion (269.675 billion won). Doosan Enerbility, ranked 10th, also had a balance close to 180 billion won. Notably, due to the concentration of demand in secondary battery stocks, six of the top 10 stocks by margin loan balance?POSCO Holdings, POSCO Future M, EcoPro BM, L&F, and others?were related to secondary batteries. Their combined balance amounted to 2.058473 trillion won.

There were also many secondary battery-related stocks outside the top 10. SK Innovation's margin loan balance was 172.574 billion won. LG Chem (155.654 billion won), LG Energy Solution (146.721 billion won), and Samsung SDI (134.319 billion won) followed.

The margin loan balances of secondary battery-related stocks have increased significantly compared to the beginning of the year. POSCO Holdings' balance at the start of the year was only 77.146 billion won, but it increased by 505.465 billion won over seven months. This is the highest figure among KOSPI and KOSDAQ listed stocks. POSCO Future M increased by 331.435 billion won, and EcoPro BM by 162.826 billion won during the same period.

Margin loan balances for stocks not related to secondary batteries either decreased or showed slight increases. Samsung Electronics had the highest margin loan balance among KOSPI and KOSDAQ stocks at the beginning of the year, with 475.615 billion won, but it decreased by 176.244 billion won. Celltrion, which had the second-highest margin loan balance after Samsung Electronics at the start of the year, increased by 31.256 billion won.

As margin loan balances in secondary battery stocks rapidly accumulated and concerns over forced liquidation grew, securities firms raised margin requirements to increase the threshold for 'debt investment.' Daishin Securities raised the margin loan deposit rate for EcoPro and EcoPro BM from 45% to 60% starting from the 28th of last month. For related stock EcoPro HN, the rate was adjusted from 50% to 60%. The collateral maintenance ratio for EcoPro and EcoPro BM was also raised from 140% to 150%.

NH Investment & Securities downgraded the credit loan limit rating to 'C' for POSCO Holdings, POSCO Future M, POSCO International, POSCO Steelion, and EcoPro BM starting from 6 p.m. on the 26th of last month. A 'C' rating limits the loan amount to 100 million won. Additionally, the collateral maintenance ratio was increased from 140% to 170%, and the margin rate was raised from 30% to 40%. Samsung Securities blocked new margin trading for EcoPro, EcoPro BM, and EcoPro HN during April and May.

Experts warned against excessive concentration. Huh Jae-hwan, a researcher at Eugene Investment & Securities, explained, "A high margin loan balance means a lot of buying on borrowed money, so if stock prices plunge sharply, it could lead to a vicious cycle, so caution is needed. For some stocks, the price levels cannot be explained by fundamentals alone."

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "For secondary battery-related stocks to rise further, someone has to keep buying at high prices, but it is questionable whether they can break through previous highs again." Lee Kyung-min, a researcher at Daishin Securities, explained, "The concentration in secondary battery stocks intensified as foreign and institutional investors joined individual investors' demand through short covering." He added, "It is necessary to increase the weighting of sectors such as semiconductors, automobiles, shipbuilding, software, and transportation, where foreign net buying has been flowing in."