▲ The KOSPI and KOSDAQ indexes are displayed on the electronic board at the dealing room of Hana Bank in Jung-gu, Seoul, on the 14th. On this day, the KOSPI closed down 0.44% from the previous trading day at 6,008.81.
The value of forced liquidations reached its highest level in about two months since late July on the 13th, when the KOSPI briefly slumped to the 5,000 range during trading session.
According to the Korea Financial Investment Association, the actual amount of forced liquidation against unsettled margin purchases was tallied at 59.35 billion won on the 13th.
This is the largest amount since July 31, when it recorded 122.01 billion won.
The proportion of forced liquidation relative to unsettled margin purchases also recorded 5.6%, the largest since July 31 (7.1%).
This is more than double the 2.7% recorded a day earlier on the 12th.
Forced liquidation refers to the scale of compulsory liquidation that occurs in stock trading due to insufficient margin.
If an investor fails to repay money borrowed from a securities firm or if the value of stocks deposited as collateral falls below a certain threshold, the securities firm forcibly sells the held stocks without the investor's consent to recover claims.
This surge in forced liquidation is interpreted as a result of the KOSPI plunging 5.46% from the previous trading day on a closing basis the previous day.
The KOSPI tumbled to as low as 5,911.11 during the session, falling below the 6,000 mark for the first time in about two and a half months since July 31 (low of 5,629.76).
In particular, the domestic stock market's top two stocks, SK Hynix and Samsung Electronics, plummeted 10.09% and 7.39%, respectively.
Investor deposits, which act as waiting capital in the stock market, decreased slightly to 100.0983 trillion won the previous day from 100.4389 trillion won on the 12th.
Credit transaction financing balances, considered an indicator of leveraged investing, recorded 34.2529 trillion won.
This was a similar level to the 34.2887 trillion won recorded on the 12th, which was the highest level since July 15 (34.3701 trillion won).
On this day, the KOSPI finished the session down 0.4% from the previous session at 6,008.81, barely holding onto the 6,000 threshold once again.
The index opened up 26.73 points (0.44%) at 6,062.08, but turned downward and temporarily dipped into the 5,000 range (5,944.65).
(Photo: Yonhap News)
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