go away in fear… I put this stock in the ant plunging field

Dealers work at Hana Bank’s dealing room in Jung-gu, Seoul. /Photo = Yonhap News

Individual investors are buying large stocks in the midst of a slump, as the stock market proverb says, ‘Burn in fear.’ Although the KOSPI and KOSDAQ indexes are currently at their lowest levels for the year, it is analyzed that individuals are using them as an opportunity to buy the lows rather than sell them.

According to the Korea Exchange on the 6th, the KOSPI index fell to 2276.63 during the intraday on the 4th, recording the lowest point of the year, and is currently trading around 2,300. It is the first time in about one year and eight months since November 2, 2020 that the index reached 2,200 during the day. The index has fallen more than 14% in the past month.

During the same period, the KOSDAQ index also recorded the lowest point of the year (712.53) during the day, and the index fell more than 20% in the last month. Since then, it has succeeded in rebounding and is currently trading at the 750 level.

Individual investors bought 4.83 trillion won worth of stocks from the stock market from the 1st of last month to the previous day. In the KOSDAQ market, a net purchase of 898 billion won was also found. Despite concerns about an economic slowdown and the US’ aggressive interest rate hikes, there are daily plunging days, but individual investors seem to be buying at low prices.

Photo = Getty Images Bank.

Photo = Getty Images Bank.

The top 5 stocks that individual investors net bought in the stock market during the period were △

It appeared as △ △ △ △. In the KOSDAQ market, △ △ △ △ △ was ranked at the top.

In particular, many stocks whose stock prices have recently plummeted are placed in the top net buying list. Samsung Electronics’ share price slid to the mid-50,000s level, down 14.24% in the past month. During this period, individuals bought 3.8 trillion won worth of Samsung Electronics stock.

SK hynix, which recently broke new 52-week lows every day, has settled in second place behind Samsung Electronics. Kakao Pay, whose share price is hovering around the bottom, is ranked in the top 4 in net buying. Individuals net bought these stocks worth 350 billion won and 210 billion won, respectively.

In the stock market, individuals are responding to the market focusing on high-quality large-cap stocks rather than small-cap stocks. The company is using it as an opportunity to buy at a low price after 4Q.

Kim Yong-goo

“We need to find stocks that are resistant to recession,” the researcher said.

In the KOSDAQ market, new growth industries such as rechargeable batteries and public offering stocks are centered on purchasing strategies. L&F’s stock price fell more than 18% in one month, but individuals held 161.4 billion won worth of stocks. Previously, as LG Energy Solutions, the largest secondary battery owner, was shaken by a review of its US battery plant investment plan, investment in the secondary battery industry shrank.

Moreover, as the initial public offering (IPO) market froze recently, the buying trend was driven by public offering stocks with undervalued corporate values. Beomhan Fuel Cell (73.4 billion won), Nextchip (58.9 billion won), and Laser Cell (48.2 billion won), which are ranked in the top net buying list, are new stocks that entered the KOSDAQ market last month.

Recently, some analysts are predicting that the stock market correction has come to an end.

Kim Kyung-hoon

“The domestic economic contraction cycle, which started in earnest in August of last year, has continued until now, and a risk off signal has been showing for 12 consecutive months,” the researcher said. As such, the end of the economic contraction cycle is expected in the third quarter of this year.”

Na Jeong-hwan, a researcher at Cape Investment & Securities, also said, “The reason the domestic stock market has fallen since the beginning of the year is due to a significant decline in the valuation of the stock market as liquidity is expected to shrink due to the US central bank’s interest rate hike and currency tightening.” The correction of the stock market due to the contraction has come to an end,” he judged.

Ryu Eun-hyuk, staff reporter at Hankyung.com ehryu@hankyung.com

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