Increased Volatility in the Korean Stock Market and Investment Trends

The Korean stock market's recent surge in volatility has led to a sharp decline in investor deposits, alongside reaching new peaks in margin debt balances. Amid this backdrop, bond-related ETFs have emerged as a preferred safe asset, experiencing substantial net inflows. This trend suggests a heightened preference for safe assets amidst market instability.
Although interest in U.S. stocks from Korean investors remains robust, recent market corrections have slightly reduced net purchases. Particularly, technology stocks continue to attract considerable attention, influenced by optimistic prospects regarding the tech industry's growth potential.
In the ETF market, safe assets are gaining popularity, with gold-based ETFs also drawing interest. Meanwhile, increased volatility in the KOSPI index has spurred active leverage investments and bargain buying. These investment patterns reflect the moves of aggressive investors willing to take risks. Daishin Securities anticipates the continuation of current market adjustments, which is steering investors towards newly attractive sectors.
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