Individuals Post 9 Trillion Won Loss in KOSPI Rally
Korean retail investors lost 9 trillion won after buying stocks at peaks during the recent market surge.
Key points
- Individual investors lost 9 trillion won after buying at peaks in May and June.
- The current trading performance of -4.41% is the worst since 1999.
- Foreign investors earned a 6.14% return by selling at higher prices.
Individual investors lost 9 trillion won after buying stocks at peak levels this year. This marks the worst trading performance in the Korea Composite Stock Price Index since 1999.
Korean retail traders recorded a negative 4.41 percent result through the 23rd. They bought shares at an average index level of 7,227.1 and sold lower.
Peak Buying Drives Massive Losses
Net purchases of 77.5 trillion won occurred when the index exceeded 7,000 points. These transactions account for 88 percent of all individual net buying year-to-date.
The average purchase price in May and June was 13 percent above the latest close. This timing created an estimated unrealized loss of 8.9 trillion won for these buyers.
Policy Measures Attract New Traders
Chosun.com reports that policy expectations acted as kindling for market participation. The postponement of National Pension Service rebalancing delayed mechanical selling until after elections.
New single-stock leveraged ETFs and the KOSPI 5000 committee further fueled buying. These factors drew individuals into the market during the sharpest price rises.
Foreign Investors Capture Market Gains
Foreign investors achieved a positive 6.14 percent trading performance during the same period. Their sales occurred at an average index level 399 points higher than their buys.
This result ranks as the fourth-best for foreign traders since statistics began. It contrasts sharply with the losses sustained by domestic individual investors.
