As the KOSPI index topped the 4,000 mark for the first time ever in Oct. and kept rising, so-called "big-hand" retail investors began flocking to the stock market.
According to the Korea Exchange (KRX) on the 2nd, from on the 1st to the 30th of the previous month, retail investors placed an average of 28,729 large orders of 100 million won or more per day on the main board. That was up 52% from Sep. (18,957).
The average daily large orders by retail investors in Oct. hit the highest level in 4 years and 2 months since Aug. 2021 (34,543).
Back in January this year, the average daily large orders stood at 16,129. The figure edged up to 21,319 in Feb., but then turned downward, shrinking to 10,034 in Apr.
Then it "briefly" rose to 12,769 in May and 23,192 in June after the presidential election ended, but turned downward again. It then stayed around 18,000 in Aug. and Sep.
As the domestic stock market recently broke through 4,000 and kept rallying day after day, the improvement in investor sentiment is seen as the driver. During Oct., the KOSPI surged 19% on expectations of a Korea-U.S. tariff negotiation deal and a tailwind from U.S. tech stocks.
The stock that drew the most large retail orders of 100 million won or more last month was Samsung Electronics. According to the exchange, through Oct. 30, retail investors placed a total of 60,243 large orders in Samsung Electronics, ranking No. 1.
This appears to reflect Samsung Electronics' third-quarter results and expectations for collaboration with Nvidia. Samsung Electronics last month reported third-quarter results that beat market expectations. It also made official its supplies to Nvidia, a leading U.S. artificial intelligence (AI) stock, and recently Samsung Electronics Chairman Lee Jae-yong and Nvidia CEO Jensen Huang agreed to further strengthen mutual cooperation after a "chimaek meeting."
Second was SK hynix, with 43,787 large orders. In addition to expectations for the memory chip cycle, it was boosted by the release last month of record third-quarter results.
Next, in third place, Doosan Enerbility (29,116) made the list as a nuclear power stock on expectations of benefits from the Korea-U.S. nuclear cooperation project "MANUGA."
They were followed by Naver (18,235), Hanwha Ocean (17,489), Samsung SDI (13,270), HANMI Semiconductor (12,980), and Hyundai Motor (10,855), in that order.
Brokerages projected that the KOSPI's uptrend will continue next year. In particular, semiconductor stocks are expected to maintain their leadership status.
Kang Dae-seung, an analyst at SK Securities, said, "While recession fears are limited, major countries are likely to continue accommodative monetary policy to prevent further economic slowdown, so next year will see a liquidity-driven market similar to this year," adding, "Dependence on existing leaders where demand is created by government policy will deepen. An investment strategy focused on AI infrastructure such as semiconductors will remain valid next year."
However, some also caution that if expectations for U.S. rate cuts weaken, market volatility could increase in the short term and should be watched.
Na Jeong-hwan, an analyst at NH Investment & Securities, said, "The main drivers of this rally have been the U.S. rate-cut cycle and the AI investment cycle, and if expectations for the continuation of those two drivers fade, there could be some price corrections," adding, "With the tariff talks and the Federal Open Market Committee (FOMC) meeting all done, the market will focus on inflation and employment data that will influence the Federal Reserve's (Fed) rate path."