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Photo = NVIDIA |
[Alpha Biz= Kim Sangjin] As of December 27, 2024, the trading volume of U.S. stocks by domestic investors has reached $58.77 billion (approximately 86.47 trillion Korean won), marking a 119% increase compared to January's $26.77 billion (approximately 39.39 trillion won). This marks a significant rise in trading activity, reflecting a continuing upward trend in the interest of South Korean investors in U.S. stocks.
The steady increase in "Seohak Ant" (Korean investors in U.S. stocks) trading volume has been noticeable throughout the year. Trading volume surpassed $30 billion in February ($31.26 billion), $50 billion in July ($51.86 billion), and even reached over $63 billion in November ($63.50 billion).
In contrast, domestic stock market trading volumes have sharply declined. The combined trading volume of the KOSPI and KOSDAQ indices, which stood at approximately 426.16 trillion won in January, has dropped to just 305.40 trillion won in December, barely maintaining the 300 trillion won threshold.
The decline has been particularly significant in the KOSDAQ market. Trading volume on the KOSDAQ fell from 230.92 trillion won in January to 130.78 trillion won in December, a drop of around 100 trillion won over the course of the year.
This shift is largely attributed to the widening performance gap between the South Korean and U.S. stock markets. While the U.S. market has seen robust growth, with the NASDAQ and S&P 500 indices rising more than 30%, South Korea’s KOSDAQ index fell by about 21%, and the KOSPI index also decreased by nearly 10%, leading many investors to look to the U.S. for better returns.
This growing disparity has fueled what is referred to as "FOMO" (Fear of Missing Out) among investors. With the U.S. stock market continuing to rise, there has been a psychological shift, causing more investors to jump on the U.S. stock bandwagon, even belatedly. Investment communities have seen an uptick in posts showcasing the returns of U.S. stocks, further intensifying the desire to participate in the U.S. market.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
