From BigGo Finance · BigGo Finance · · 1m 40s
KOSPI Swings 3% in One Day
South Korea's KOSPI swings 3% in a day as margin debt stays above 32 trillion won.
In brief
South Korea's KOSPI swings 3% in a day as margin debt stays above 32 trillion won. South Korea's KOSPI dropped 3.17% then rose 1.76% in one session, with forced liquidation hitting 169.834 billion won over two days. Originally reported by BigGo Finance.
KOSPI swings 3% in one day
South Korea's KOSPI plunged 3.17% early trading on October 19 before closing up 1.76% in a single session.
Margin debt stays above 32 trillion won
Margin loan balances stood at 32.2528 trillion won (approximately $24.2 billion) as of October 16.
Forced liquidation hits 169.834 billion won
Forced liquidation against unsettled brokerage receivables totaled 169.834 billion won (approximately $127.4 million) over October 14-15.
Investor deposits fall 2.5 trillion won
Investor deposits dropped to 94.403 trillion won (approximately $70.8 billion) on October 16, down 2.5092 trillion won from the previous day.
KOSPI down 20.70% over eight sessions
The KOSPI fell 20.70% over eight straight sessions from October 6 to 16, with a forward price-to-earnings ratio of 4.2 times.
Hwang Hyun-hee's warning
Hwang Hyun-hee warned that a market dropping 20% from a peak is oversold and novice investors should split funds into five tranches.
Analysts caution on volatility
Analysts say the market is oversold but volatility remains high, urging a conservative approach to investing.
Forced liquidation nears 170 billion won
Forced liquidation reached 169.834 billion won (approximately $127.4 million) in two days, with cumulative liquidation hitting 298.1 billion won.
KOSPI may require staged buying
The KOSPI may look like a level for staged buying but investors should approach it conservatively due to high margin debt.
What to remember
South Korea's KOSPI dropped 3.17% then rose 1.76% in one session, with forced liquidation hitting 169.834 billion won over two days.
