The KOSPI is trapped in the '6,000 line box,' and domestic investment enthusiasm is noticeably cooling down. On the other hand, the sharp drop in exchange rates is fueling buying interest in US stocks.
According to Korea Securities Depository's Save on the 31st, domestic individual investors net bought US stocks worth $2.396 billion in August. This marks the third consecutive month of net buying since it turned to net buying in June. The net buying trend that peaked at $4.642 billion last month when the KOSPI plummeted to 5,200 points continues this month.
In contrast, trading activity in the KOSPI market has significantly declined. This month's average daily turnover rate of listed stocks was 0.54%, hitting a record low for the year. The average daily trading volume also plunged by more than KRW 11 trillion to KRW 25.7657 trillion, marking a yearly low.
The investment trust fund, which is market liquidity, fell below KRW 100 trillion after August 26th.
It is interpreted that the weakness of semiconductor stocks, which have led the domestic stock market so far, has fueled investor exodus. Last month, Samsung Electronics and SK Hynix share prices plummeted by 21.4% and 35.2%, respectively. This month, they have also fallen more than 4% and 6%, respectively, continuing their downward trend.
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The recent drop in exchange rates is further encouraging the movement of 'ant investors.' The won/dollar exchange rate has fallen below the 1,400 won mark for the first time in 10 months. This lowers the burden of currency conversion for exporting companies and increases accessibility to US stock purchases.
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Leveraging dollars as collateral accelerated the decline, but
The fallen ants are heading back to the US market again.
The government is still deliberating on a bill to adjust the leverage percentage. It seems that they cannot act as quickly as when they introduced leverage.
https://news.nate.com/view/20260830n04743
▶ Original source: https://news.nate.com/view/20260831n14057
