Concerns are rising among retail investors as economic YouTuber Shuka analyzes the KOSPI's supply and demand trends.
On July 13, Shuka conducted a live broadcast on his YouTube channel.
According to the data he presented, since May 7, retail investors have net purchased approximately 88 trillion won, while foreign investors have net sold about 106 trillion won. Although institutions also engaged in net buying of around 17 trillion won, they were unable to absorb the large-scale selling by foreign investors.
Another report indicated that after the KOSPI surpassed the 7,000 mark on May 6, retail buying surged, while foreign selling continued to increase.
As of July 13, the KOSPI fell to around 6,800 during trading, reflecting a correction. Shuka illustrated with charts and supply-demand data that the trading directions of retail and foreign investors have sharply diverged in the recent market.
Following the release of this data, online discussions have emerged suggesting that foreign investors may have offloaded their shares to retail investors at high prices and exited the market.
Some investors reacted by saying, "Foreigners sold 106 trillion won, and retail investors seem to have absorbed almost all of it," and "In the end, only retail investors are left holding the bag at the peak," while others noted, "Foreigners have already profited and left," and "The supply-demand situation is alarming."
Particularly, the recent increase in the proportion of investments in leverage ETFs has also been highlighted.
Some investors analyzed that as retail investors flocked to leverage ETFs, the buying momentum for physical stocks like Samsung Electronics and SK Hynix weakened, making it easier for foreign investors to increase market volatility through program trading.
They expressed concerns, stating, "As retail investors move entirely to leverage ETFs, the main stocks lack buying support," and "When foreigners shake the physical stocks, the leverage reacts more strongly, leading to a vicious cycle of retail investors chasing after them," adding, "It seems that foreigners can now move the index more easily than before."
However, these analyses reflect the interpretations of some retail investors, and there is no confirmed evidence that foreign investors are intentionally manipulating the market. In reality, various factors, including corporate performance, semiconductor industry outlook, global interest rates, exchange rates, and institutional supply and demand, collectively influence stock price movements.
Meanwhile, a different atmosphere has been noted in the KOSDAQ market. Some investors pointed out that the average returns of KOSDAQ stocks that foreign investors have net purchased over the past month have been significantly poor, stating, "Foreigners are also incurring losses in the KOSDAQ," and "The KOSDAQ is a challenging market even for foreigners."
* This article has been translated by AI.
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