SEOUL, Nov. 19 (Korea Bizwire) — South Korean stock investors’ deposits at securities firms have recently surged to a near record high on a strong market recovery, data showed Thursday.
The amount of investor deposits came to 63.11 trillion won (US$57.2 billion) as of Wednesday, up 268 billion won from the previous day, according to the data from the Korea Financial Investment Association.
It marks the second-largest amount ever after an all-time high of 63.3 trillion won recorded on Sept. 4 this year.
In particular, investor deposits at brokerage houses spiked by around 10 trillion won this month alone, with the amount rising 18.3 percent in the past 15 days.
Investor deposits amounted to only 30 trillion won at the start of the year but surged to a record high in early September as the local bourse started to shrug off pandemic jitters.
Emboldened by the bullish stock market, retail investors are also rushing to borrow money from securities companies to invest in stocks, according to the association.
Outstanding margin loans to retail investors stood at 17.24 trillion won as of Tuesday, the largest level in a month.
Margin loans refer to those that retail investors take out from brokerage houses to invest in stocks. A gain in outstanding margin loans usually points to growing investor expectations for higher stock prices.
The South Korean stock market has been on a roll this month. The benchmark Korea Composite Stock Price Index (KOSPI) finished at 2,545.64 on Wednesday, up 10 percent from the start of the month and the highest in 33 months.
The price index of the tech-laden KOSDAQ market climbed 6 percent over the cited period to close at 802.95.