As the KOSPI index has been swinging sharply amid the war between the United States and Israel and Iran, funds for "bit-too" ("investing with borrowed money") and cash on the sidelines have swelled to all-time highs. Borrowed-investment funds have surpassed a record 33 trillion won.
According to Korea Financial Investment Association statistics on the 9th, outstanding margin financing in Korea's stock market set a new record every day for three straight days from on the 3rd, when the fallout from the U.S.-Iran war first hit the market.
Outstanding margin financing stood at about 32.8 trillion won on the 3rd, when the KOSPI index posted its steepest-ever drop. On the 5th, when the KOSPI jumped by a record amount, it climbed to about 33.7 trillion won, repeatedly setting new records. Outstanding margin financing refers to the amount investors have borrowed from securities firms for stock investing and have not yet repaid.
Amid heightened volatility in the domestic market, individual investors are seen as having targeted bargain-hunting opportunities. On the 3rd, the KOSPI index plunged 452.22 points (7.24%), and on the 4th it fell as much as 698.37 points (12.06%), retreating to the 5,000 level. Then on the 5th it surged 490.36 points (9.63%), reclaiming the 5,800 level.
Individual investors also concentrated on buying leveraged exchange-traded funds (ETFs) last week, when the market slumped, which deliver multiplied gains when the index rises.
Individual investors made the largest net purchases last week of KODEX Leverage products. The second-most-bought ETFs were KODEX KOSDAQ 150 Leverage and TIGER Semiconductor TOP10 Leverage.
Investor deposits, categorized as cash on the sidelines, were also tallied at near-record levels. Investor deposits, which totaled 118.7488 trillion won on the 27th of last month, hit a record high of 132.0682 trillion won on the 4th. They came to 130.8873 trillion won on the 5th.