Outstanding margin loans across the two markets stood at 33.34 trillion won ($24.36 billion) as of Aug. 28, up 8.96 billion won ($6.5 million) from a day earlier, according to the Korea Financial Investment Association (KOFIA).
The increase was driven by KOSDAQ stocks, where margin borrowing jumped 101.71 billion won to 6.95 trillion won. By contrast, borrowing tied to KOSPI-listed shares fell 92.75 billion won to 26.39 trillion won.
Margin financing allows investors to borrow money from brokerages to buy stocks. A higher balance therefore indicates that more borrowed money is being used for stock investments.
That divergence was mirrored in the market on Aug. 28. The KOSPI lost 1.79 percent to 6,788.88, while the junior KOSDAQ edged up 0.09 percent to 838.41. The data showed borrowing increased for KOSDAQ stocks while declining for large-cap shares.
Cash waiting on the sidelines also increased sharply. Investor deposits at brokerages rose by 3.10 trillion won from a day earlier to 99.81 trillion won as of Aug. 28.
The deposits include cash set aside to buy stocks and money from recent stock sales that has not yet been withdrawn, meaning a substantial amount of cash remains available for investment.
Riskier short-term trading indicators, meanwhile, eased. Unpaid stock purchases fell to 930.30 billion won as of Aug. 28. These trades occur when investors buy stocks without having enough cash in their accounts to cover the full purchase and fail to pay the remainder by the settlement deadline.
Forced liquidations tied to such unpaid trades also fell sharply, to 4.80 billion won from 24.87 billion won a day earlier. The ratio of forced liquidations to unpaid settlement balances fell to 0.5 percent from 2.2 percent, according to KOFIA.
The KOSPI has gained 3.4 percent to finish August at 6,820 from the previous month wherease the KOSDAQ soared 15.91 percent to 834.3.
Korean shares recovered on Monday, with the KOSPI closing 0.46 percent higher at 6,820.02. The benchmark extended those gains slightly on Tuesday, rising 0.11 percent to 6,827.46 as of 10:23 a.m.
AJP Takeaways
• Margin borrowing rose for a ninth straight trading day to 33.34 trillion won as of Aug. 28.
• Borrowing increased by 101.71 billion won on the KOSDAQ while falling by 92.75 billion won on the KOSPI.
• Investor deposits approached 100 trillion won, while unpaid balances and forced liquidations declined.
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