Individual investors in the Korean stock market sold 6.8 trillion won worth of stocks over three trading days from May 21 to May 23, according to Korea Exchange data released on May 25. The mass selling followed extreme volatility that saw the KOSPI index fall more than 30% from its May 19 high of 9385.59 points intraday before recovering to the 7000 level. Financial industry officials attributed the exodus to investors' inability to withstand the fear caused by the sharp decline, which was triggered by Middle East geopolitical risks that pushed the index down to the 6400 level intraday on May 20.
Individual Investors Sold 6.8 Trillion Won Over Three Trading Days
Individual investors recorded net selling of 2.2 trillion won on May 21, 1.9 trillion won on May 22, and 2.5 trillion won on May 23 in the securities market. The three-day total of 6.8 trillion won in net selling contrasted sharply with foreign investors, who purchased 6.8 trillion won during the same period.
Samsung Electronics and SK Hynix Led Selling List
Samsung Electronics was the most heavily sold stock by individual investors during the three-day period, with net selling of 2.1573 trillion won. SK Hynix followed with 1.8059 trillion won in net selling. Samsung Electronics preferred shares recorded 202.6 billion won in net selling, SK Eternix 186.7 billion won, and Samsung Electro-Mechanics 181 billion won. Leveraged ETFs also appeared among the top sold securities, with KODEX SK Hynix single-stock leverage recording 144.4 billion won in net selling and KODEX Samsung Electronics single-stock leverage 88.5 billion won.
A financial investment industry official stated, "The KOSPI recently fell to the 6400 level intraday on May 20 due to Middle East geopolitical risks and other factors, then rebounded to the 7000 level in a short period, but individuals who could not endure the fear appear to have engaged in profit-taking and stop-loss selling."
Investor Deposits Dropped 33 Trillion Won in One Month
Investor deposits, which reached 139 trillion won in early last month, decreased to 106 trillion won as of May 21, representing an outflow of approximately 33 trillion won in one month. Margin trading balance also declined from 38 trillion won at the end of last month to 33 trillion won recently. An industry official stated, "This appears to be the result of forced selling and credit repayment during the stock market plunge."
FAQ
How much did individual investors sell in Korean stocks from May 21 to May 23?
Individual investors sold 6.8 trillion won worth of stocks in the Korean securities market over the three trading days from May 21 to May 23, according to Korea Exchange data released on May 25.
What was the KOSPI index decline that triggered the selling?
The KOSPI index fell more than 30% from its May 19 intraday high of 9385.59 points, dropping to the 6400 level intraday on May 20 due to Middle East geopolitical risks before recovering to the 7000 level.
