Investor Deposits Exceed 92 Trillion Won
KOSPI Rises for 11 Consecutive Trading Days
5,000-Point Milestone in Sight for KOSPI
Domestic Fund Returns Far Outpace Overseas Funds
Net Purchases of $3.9 Trillion Won in U.S. Stocks Despite High Exchange Rate
As the KOSPI index has risen for 11 consecutive trading days and is now on the verge of surpassing the symbolic 5,000-point mark, the amount of idle funds flowing into the market is reaching record highs. With more investors anticipating further stock price increases, both customer deposits and credit loan balances have surged significantly.
Investor Deposits Surpass 92 Trillion Won... "Jumping on the Uptrend"
According to the Korea Financial Investment Association and FnGuide on January 17, investor deposits stood at 92.603 trillion won as of January 15. This represents a sharp increase of approximately 4.7739 trillion won in just about two weeks since the end of last year, when the figure was 87.8291 trillion won.
Credit transaction loan balances, which are funds surrounding the stock market, are also climbing steeply. Over the same period, the balance of credit loans grew from 27.2865 trillion won to 28.7456 trillion won, up by about 1.4591 trillion won. As the KOSPI jumped 13.84% since the start of the year and surpassed the 4,800-point level, it appears that funds from investors trying to join the rally are pouring into securities firms.
Amid this exceptional strength in the domestic stock market, domestic equity funds are also posting impressive results. Since the beginning of the year, the average return for domestic equity funds (1,054 funds) has reached 11.94%, more than double the average return of 4.90% for overseas equity funds (1,157 funds). In particular, index funds that track the market have led the bull run with a high return of 12.49%.
Daishin Securities commented, "As rotational buying continues, focusing on sectors undervalued relative to their earnings, the upward momentum of the KOSPI is becoming even stronger. While the earnings momentum is expected to continue for the time being, the sharp rise in the index has increased valuation pressures, which could heighten market sensitivity to future issues."
Despite 1,470 Won Exchange Rate... Korean Investors Continue 'Tesla' Shopping Spree
Even amid the domestic stock market frenzy, Korean investors' enthusiasm for U.S. stocks remains undiminished. According to the Korea Securities Depository, domestic investors made net purchases of U.S. stocks worth $2.63884 billion (approximately 3.891 trillion won) from the beginning of the year through January 15.
Despite the high won-dollar exchange rate, which has hovered above 1,470 won, investors have maintained aggressive buying, particularly in U.S. technology stocks. Notably, the most purchased stock by domestic investors during this period was Tesla, with a net purchase amounting to $484.37 million (about 714.1 billion won).
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