After 3 and a half years, the KOSPI index has recovered the 3,000 level, and investors are divided on the future direction. Some investors are betting on rising values and engaging in 'debt investment' while, conversely, the balance of ‘short selling’ has also increased.

On the afternoon of the 20th, the KOSPI index rises by 44.10 points (1.48%) to 3021.84, while the won-dollar exchange rate shows a decrease of 13.30 won (0.96%) to 1366.90 won on the electronic board at Hana Bank's dealing room in Jung-gu, Seoul. It has been 3 years and 6 months since the KOSPI last surpassed the 3000 mark based on the closing price, which was on December 28, 2021 (3020.24). /Courtesy of News1

According to the Korea Exchange and others on the 22nd, the balance of margin trading for KOSPI stood at 11.56 trillion won. This represents an increase of about 10.65% compared to the end of last month (10.44 trillion won) and roughly 28% compared to the end of last year. Margin trading refers to individuals borrowing funds from securities firms to invest in stocks, and typically the balance increases when stock prices are expected to rise.

By sector, an increase in 'debt investment' has been identified for financial stocks. The growth rate of credit balances in securities and banks recorded 98.24% and 58.68%, respectively. Expectations for growth have also focused on finance (credit balance growth rate of 42.34%), construction (38.92%), IT services (34.14%), and insurance (28.53%).

At the same time, there are also concerns regarding the rise in the KOSPI index. The balance of short selling increased by 16.37%, from 6.75 trillion won on the 30th of last month to 7.86 trillion won on the 18th. Short selling is an investment technique where stocks are borrowed and sold in advance, with the aim of buying them back later for profit, and the short selling balance reflects the stocks sold that have not yet been covered. The more investors expect stock prices to fall, the higher the short selling balance will grow.