stock
Input2023.08.06 18:27 Edit2023.08.06 18:27 Ground A3
The stock market has become a battlefield… Monthly transaction volume approaching 570 trillion won
“Only I will fall behind” FOMO psychology spread
Do not ask about small and medium-sized battery stock investment
Over 60s, 157% increase in transaction amount within 6 months“Investors who came in late, raise the bubble
In the future, when the stock price adjusts, the damage will increase.”
Kim Seung-se (35), who works for a large domestic company, sold both a target date fund (TDF) and an exchange-traded fund (ETF) that tracked the S&P 500 index in the middle of last month. The proceeds from the sale were used to purchase two stocks related to secondary batteries. Mr. Kim, who had faithfully followed the principles of long-term investment for his old age, suddenly changed his mind because of an internet community certification post that posted the results of investing in secondary batteries. Mr. Kim said, “After seeing an internet post about how I made hundreds of millions of won in just a few months with rechargeable batteries and hearing about successful investments from my colleagues at work, I feel that the expected return on long-term investment in the US index, which reaches an annual average of 8-9%, is insignificant.”
Secondary battery investment certification posted on Mom Cafe
Investing in stock market theme stocks is becoming more and more prevalent day by day. This is because ‘FOMO (fear of missing out) syndrome’ is spreading as some theme stocks such as rechargeable batteries soar. Some point out that surplus funds, which were concentrated in real estate in the past, are pouring into the short-term investment market as concerns about economic uncertainty grow.
According to Koscom on the 6th, Ecopro, the leader in secondary batteries, was traded on the KOSDAQ market last month for a total of 32.7596 trillion won. Compared to 876 billion won in January this year, it has increased more than 37 times. The ratio of transaction amount to market capitalization, which is an indicator of short-term overheating, also rose from 28% in January to 100% last month.
During the same period, the transaction amount of Ecopro BM also increased by 26 times from 1,114.4 billion won to 27,282.1 billion won. This year, as stock prices of Ecopro and Ecopro BM soared by 967% and 307%, respectively, investors flocked to them. It’s not just ‘Ecopro Brothers’. Recently, POSCO Holdings, which has been reborn as a major shareholder of rechargeable batteries, has increased its transaction value by more than 16 times from 2.3072 trillion won at the beginning of this year to 37.7021 trillion won in July. ‘Don’t ask investment money’ also flocked to small and medium-sized stocks. Geumyang, where writer Park Soon-hyeok, who became famous for “Battery Man,” worked, saw its transaction value increase from 1.1934 trillion won in January to 12.5044 trillion won in July. The company’s stock price has also jumped 562 percent this year. The ‘deposit turnover rate’, an indicator for diagnosing short-term overheating, also rose from 18.82% at the beginning of this year (January 2nd) to 51.24% on the 3rd. This means that among the deposits entrusted by customers, the funds that lead to actual investment are increasing. Normally, the securities industry evaluates that this figure has entered the overheating zone when it exceeds 40%, and has entered the overheating zone when it exceeds 50%.
A craze beyond the coin frenzy
This theme stock craze is comparable to the ‘coin frenzy’ that blew in the domestic market two to three years ago. Even at the time, there were many ant investors who belatedly jumped into FOMO syndrome. There are other points. Unlike coin investment led by the 20s and 30s, people of all ages are flocking to it. According to the stock trading status of customers by age at a large securities company, company A showed the highest rate of increase in stock market trading volume in July compared to January, at 170% in their 20s. However, other age groups such as 164% in their 30s, 147% in their 40s, 154% in their 50s, and 157% in their 60s and older showed a similar level of increase to those in their 20s. An official from a securities company said, “Stories of secondary battery stocks are coming up from mom cafes, baduk communities, and game-related cafes that are not usually interested in stocks.” “New investors in the market are raising bubbles.”
Market volatility rises due to theme stock debt
In particular, experts see the increase in ‘short-term debt’ (debt-investing) as a risk factor. The amount of unaccounted transactions, which is invested as ‘extra credit’ by using two days from the conclusion of the transaction to the date of payment, has quadrupled this year. The size of credit loans (loans), which borrow money for a short period of 1 to 3 months to buy stocks, increased from 16.5311 trillion won at the beginning of this year (January 2) to 20.1932 trillion won as of the 3rd of this month. Most of the growth was driven by secondary battery-related stocks. As the stock price rose steeply, more investors decided that they could see investment profits even if they paid off debt. The accumulation of such debt can increase volatility in the process of future stock price adjustments. This is because when the stock price falls below a certain percentage, securities companies forcibly sell stocks, which leads to counter-selling, and this counter-selling causes the stock price to fall again.
Reporter Seong Sang-hoon uphoon@hankyung.com
2023-08-06 09:27:27
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