The balance of credit loans taken out for stock investments by individuals has reached over 11 trillion won ($9.1 billion), data showed Friday.
According to data from the Korea Financial Investment Association, the balance for credit financing marked nearly 11.47 trillion won as of Wednesday, the highest figure since Oct. 11, 2018, when it marked 11.57 trillion won.
As stock markets around the globe were hit hard by the coronavirus pandemic, the balance dipped to 6.41 trillion won on March 25. But the figure has since been rising on retail investors seeking profit, according to market insiders.
Despite ongoing political tensions between the US and China over China imposing a national security law in Hong Kong, the local stock indexes have recently rallied on expectations to reopen major economies.
The main bourse Kospi extended its winning streak to a fifth consecutive session Thursday to close at 2,151.18. It was the first time for the index to cross the 2,150-point mark since Feb. 21, when it closed at 2,162.84.
As of Friday’s close in trading, the benchmark Kospi sat at 2,181.87, up 30.69 points, or 1.43 percent from the previous session, as institutional investors scooped up shares.
The tech-heavy Kosdaq also traded higher at 749.31, up 6.94 points or 0.93 percent, propelled by foreign investors’ buying.
By Jie Ye-eun (firstname.lastname@example.org