Retail funds pour in, deposit turnover50exceeds %, volatility expands
As the KOSPI hits record highs day after day, funds from individual investors are flowing in. 6 month 1 day, investor deposits stood at 132 trillion 5992 hundred million won, increasing by more than 10 trillion won in ten days, while deposit turnover exceeded 50%, with profit-taking sales and new purchases becoming entangled and volatility rising.
As the KOSPI repeatedly sets new highs, individual investors' funds are concentrating in the stock market. Despite concerns about valuations following the short-term surge and worries over external variables, FOMO is leading to buying. Profit-taking sales and new purchases are becoming entangled, causing daily volatility to expand.
According to figures compiled by the Korea Financial Investment Association, investor deposits on 1 stood at 132 trillion 5992 hundred million won. Over the same period, deposits increased by more than 10 trillion won in ten days. An increase in investor deposits is classified as an indicator of investors' capacity to enter the stock market.
Earlier, on 5 month 12 day, investor deposits reached 137 trillion 4174 hundred million won, setting a record high. They subsequently declined, at one point falling to the 120 trillion-won range. These fluctuations coincide with the rapid changes in individual investors' timing of buying and selling.
Recently, the deposit turnover rate exceeded 50%. A rising turnover rate means that the same funds were traded multiple times over a short period. As a result, temporary trading became more frequent, and observations suggest that the index’s daily fluctuations widened.
Investor deposits include cash that investors have placed in brokerage accounts to purchase stocks, as well as funds not withdrawn after selling stocks. Because these funds can be converted into orders at any time, they are used as standby funds directly linked to stock-market trends. Changes in investor deposits and the turnover rate provide some insight into individual trading tendencies.
The pattern observed in the market is an inflow of individual buying pressure followed by repeated profit-taking. A pattern of particularly high volatility has been identified on days when trading value and the turnover rate rise simultaneously. Investors are reviewing trading conditions with reference to the investor-deposit and turnover-rate figures announced today and their changes.
Sources: 파이낸셜뉴스 증권
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