(image: KobizMedia/ Korea Bizwire)
SEOUL, Apr. 18 (Korea Bizwire) — Retail investors have expanded their portfolio in South Korea’s junior KOSDAQ bourse, leading to the market’s recent upturn, data showed Wednesday.
On Tuesday, the tech-laden KOSDAQ rose 0.48 percent to close at 901.22, the first time in about two and half months that the index surpassed the 900-point mark.
After reaching the yearly high of 927.05 on Jan. 29, the index skidded to as low as 829.39 on Feb. 13. After wobbly sessions, the KOSDAQ market bounced back to come close to this year’s peak in recent days.
The ups and downs have been in line with the amount of money retailers put in the secondary market, according to the data.
In January, individuals accounted for 87 percent of the total trading in the KOSDAQ shares, but the proportion fell to 83.2 percent in February before being on the rise to 85.4 percent in March and 87.1 percent this month, according to the data by the bourse operator, the Korea Exchange.
They also bought a net 494.1 billion won (US$463.4) worth of shares this month as of Tuesday, changing their course from the net selling mode in March.
Also leading the KOSDAQ rebound is the recent release of the Kosdaq Venture Funds.
In line with the government’s drive to boost long-term investment and support smaller firms and start-ups, the new product attracted 1.12 trillion won as of Monday, a week since the launch.
“More retail investors appear to be focusing on the potential that innovative companies have (as a key condition for their investment), such as bio firms,” said Lee Sang-hun, an analyst at Hi Investment & Securities.
“The venture fund is also expected to play a key role in allowing more individuals to help the growth of smaller companies and the subsequent boom in the KOSDAQ market,” he added.
(Yonhap)
