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Stock loans rise on retailers' investment expansion

All Headlines 09:18 June 05, 2018

SEOUL, June 5 (Yonhap) -- The amount of money borrowed to buy stocks in South Korea has surged this year, data showed Tuesday, as individuals have increased investment amid hope for a boost in inter-Korean economic cooperation.

The so-called margin trading for local stocks stood at 12.49 trillion won (US$11.67 billion) as of the end of last month, up 26 percent from 9.89 trillion won tallied at the beginning of this year, according to data compiled by the Korea Financial Investment Association.

The margin debt for firms listed on the country's main KOSPI market jumped 37 percent to 6.19 trillion won, with that for the tech-laden KOSDAQ market rising 17 percent to 6.31 trillion won, the data showed.

Last month, the figure soared to the all-time high of 12.55 trillion won, according to the association.

Market watchers attributed the increase in margin trading to retail investors' expansion of trading, cued by stellar market performances last year.

"This year, individuals have led the buying on the bourse, while foreigners and institutions have been in selling mode," Kim Hyung-ryeol, an analyst at Kyobo Securities.

"Their choices include bio shares, which have tumbled in recent weeks, and such shares as construction and steel firms, which are expected to bask in the improving inter-Korean ties," he added.

Stock loans rise on retailers' investment expansion - 1

graceoh@yna.co.kr
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