Smiling items in ants soaring in debt
Up to KRW 11 trillion in credit financing balances
Kiwoom Securities cut interest rate cut
Texel Netcom goes beyond 1 trillion
As individual investors in stocks soared, the related stocks are laughing.
According to the Korea Finance Investment Association (KITA) on Monday, the balance of credit financing reached a record high of 11.1808 won as of March 30.
It rose more than 1 trillion won from December 9 (9,860.8 billion won) a month ago last December. Especially in the KOSDAQ market. The KOSDAQ margin loan balance was 6 trillion 397.4 billion won, up about 1 trillion won from a month ago (5.378 trillion won).
The KOSDAQ index has risen 15 percent from 803 to 920 this year, and individual investors are rushing to invest in stocks.
Kiwoom Securities is taking a sigh of relief. This is because the credit crunch has offset the concerns about a decline in profit due to interest rate cuts.
Thanks to this, shares have risen 24.4% this month.
Credit lending is a financial service that borrows money from securities firms to buy stocks when investors see the stocks going up. Investors should pay 4 ~ 11% of interest to securities firms during the loan period.
Last year Kiwoom Securities lowered its interest rate (from 1 to 15 days), which was a maximum of 11.75%, to 7.5% in 1 ~ 7 days and 8.5% in 8 ~ 15 days.
As a result, many analysts believe that brokerage stocks (brokers) and Kiwoom securities, which are highly contributed to individual investors' profits, will decrease. With the KOSDAQ market booming, interest rate cuts were rather weak.
According to Mirae Asset Daewoo, Kiwoom Securities is accelerating the flow of new accounts.
The average daily average is 2400, which is equivalent to 1.9 times the average of 1300 left in the last three years.
Kiwoom Securities' credit balance is estimated at W1.5trn, up 15% from the previous quarter (W1.3trn).
"We expect the brokerage market share to rise to 17 percent," said Mirae Myeong-won, a researcher at Mirae Asset Daewoo.
An official of Kiwoom Securities said, "The credit limit is already over 95%, and we are also considering the increase."
Texel Netcom, which operates integrated network services, surpassed the market cap of 1 trillion won due to share price rises thanks to subsidiary savings banks.
The share price soared 96.7% in the month. Texel Netcom is a wholly-owned subsidiary of Sejong Savings Bank and Equity Savings Bank.
According to Hana Financial Group, the combined lending by two savings banks is about 1.8 trillion won this year.
Among all loans, equity-linked loans account for about 50%. "It is estimated that the combined operating profit of the two banks will increase 81.8 percent from 118.4 billion won last year to 215.5 billion won this year," said Hana Financial Investment Research Institute.
The shares of Paxnet, Korea's No. 1 comprehensive financial investment platform with 6.5 million members, also climbed 14.7% this year.