KOSPI broken by 2200 due to counter trading volume… 1920 line perspective chart

28th KOSPI and KOSDAQ new low price 1,060 stocks
Opinions also said “there is already a low decline, so further decline is limited.”

As the global economic downturn and anti-trading volumes are released, the lower end of the KOSPI is expected to move to the level of the 1920s. [게티이미지뱅크]

The KOSPI index is falling sharply. Although the 2200 line has collapsed, some brokerage firms predict that it could be pushed down to the 1920 level.

As of 3:16 pm on the 29th, the KOSPI is trading at 2172.11, up slightly (0.13%) from the previous day. The KOSPI was also pushed below the 2,150 level during the day for the first time in about two years and two months the previous day.

As the KOSPI plunged, the top stocks by market capitalization fell. The previous day, 1,060 stocks recorded new lows, including the KOSPI (365 stocks) and the KOSDAQ (609 stocks). Semiconductor giant Samsung Electronics slipped to 53,500 intraday gains, recording a 52-week low, while SK Hynix, the second largest by market cap, also broke new lows for a second day. ICT giant Kakao also posted a 52-week low for the ninth consecutive day.

Fears of a global economic downturn took a toll on the KOSPI, pulling the index down. The possibility of further declines increased as the number of counter trades increased as the stock price plunged. As of the 26th, the number of uncollateralized accounts in the five domestic brokerages was 15,779, three times the number at the beginning of this month (5336). Counter trading refers to a brokerage firm that forcibly sells stocks when an investor who borrows money from a brokerage firm to buy stocks fails to repay the receivables within the agreed upon period. Typically, individual investors facing a collateral shortfall are placed in a cross-border trade if they do not replenish their funds within the time limit.

Conditions around the stock market were mixed with bad news. These include the burden of raising corporate funds due to rising interest rates, concerns about an economic slowdown, and anti-trading amounts that have become burdensome with the stock market crash.

As a result, brokerage firms also offer a gloomy outlook for the KOSPI. Eugene Investment & Securities predicted that the KOSPI could move up to the 1920 level. Heo Jae-hwan, a researcher at Eugene Investment & Securities, said, “The current stock price still reflects the possibility that companies will perform better next year than this year. It could be pushed back to 1920-2020.”

Han Jae-hyuk, a researcher at Hana Securities, said, “From the closing price on the 28th, the KOSPI plunged 11% from the peak of 2449.54 in September, and there is a high possibility of a decline for now.

However, some analysts say the decline will not be long. From the point of view anti-trading volumes have already appeared and the KOSPI is at its bottom. Kim Young-hwan, a researcher at NH Investment & Securities, said, “Additional counter trades may appear, but a significant portion of counter trades have already taken place. The level of anti-trading that appeared at the beginning of the month is slightly lower than in June,” he explained. “Even if the KOSPI falls in the short term, it won’t last long.”

By Hong Da-won, staff reporter [email protected]

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