SEOUL, July 24 (Korea Bizwire) – As the stock market is showing signs of long-awaited recovery, the credit loan balance is rapidly on the rise. This is more so in the KOSDAQ market. According to the Korea Financial Investment Association on July 23, the balance of loans taken out for the purpose of stock investment was 5,023.5 billion won as of July 22, continuing its upward trend since it broke the 5-trillion-won mark for the first time this year on the 18th.
The balance has stayed at the 5-trillion-won level for three consecutive trading days between July 20 and 22. The credit loan balance for the KOSPI and KOSDAQ market on the 22nd was 2,592.4 billion won and 2,431.1 billion won, respectively. This is the first time for the balance to hit the 5-trillion-won level this year and first time in 27 months since April 10, 2012 when the figure was 5,000.1 billion won.
Beginning with 4,172 billion won early this year, the balance has steadily grown. But the figure has remained below the 5-trillion-won level for a long time before breaking it recently. The KOSPI rose above the 2020 line on the 17th and hit a record-high level on the 22nd by approach 2030 points. On the 23rd, the market once rose to 2035, raising expectations that the long hoped-for recovery is finally at hand.
The credit loan balance increased more in the KOSDAQ market in the KOSPI. Comparing to the KOSPI’s 13.2 percent growth from 2,289.8 billion won in early in the year to 2,592.4 billion won on July 22, the KOSDAQ market saw a 29.2 percent growth during the same period, from 1,882.2 billion won to 2,431.1 billion won. That’s largely because small caps have recently shown strength.
by Sean Chung (email@example.com)