Market participation by "big-hand" Les Fourmis who place orders of at least 1 billion won a day in stock transaction has surged.
According to the Korea Exchange (KRX) on the 10th, the number of large orders of at least 1 billion won placed by individual investors participating in the main board (KOSPI) last month topped 1,193,000. It was the largest monthly figure on record, surpassing the previous peak of 1,153,301 in Jan. 2021 for the first time in about 5 years and 3 months.
That was a sharp 16.8% jump from the prior month (1,021,744). Analysts said sentiment improved as the KOSPI rallied about 30% last month on expectations for an end to the Iran war and strong results from large semiconductor stocks such as Samsung Electronics and SK hynix, which rank No. 1 and No. 2 on the KOSPI by market capitalization.
In fact, large orders by individual investors, including big-hand Les Fourmis, concentrated in the large semiconductor stocks driving the KOSPI's rise. Last month alone, Samsung Electronics drew 204,025 large orders. Next, SK hynix, No. 2 on the KOSPI by market cap, drew 142,668.
Some expect the monthly tally of 1 billion won large orders to easily top 1.19 million this month. As the KOSPI continues its high-altitude run, surpassing the 7,000 level, the average daily number of large orders of at least 1 billion won so far this month is 83,067, up 53% from the previous month.
Brokerages are expressing expectations that the semiconductor rally will continue for the time being. Recently, SK Securities said the strong memory cycle that has driven the share prices of Samsung Electronics and SK hynix will be prolonged and raised its target prices for the two to 500,000 won and 3 million won, respectively.
However, some advise against indiscriminate momentum buying given the recent sharp gains in semiconductor stocks. Looking at the swings in semiconductor stocks and the KOSPI in recent months, after a surge early in the month, momentum tended to slow with fluctuations, or the market moved in a short-term box range toward the end of the month.