S. Korea's stock loans on rise nearing record high

SEOUL, Sept. 22 (Yonhap) -- Investors seem to be preparing for making bets on local stocks with the amount of such stock loans nearing the highest level ever, market data showed Friday.

The amount of money borrowed to buy stocks, so-called margin debt, reached 8.62 trillion won (US$7.61 billion) as of Wednesday, close to an all-time high of 8.67 trillion won tallied in July 27, according to the data compiled by the Korea Financial Investment Association (KOFIA).

The figure compares with 6.77 trillion won worth of margin debt at the end of last year and 6.52 trillion won as of end-2015.

The country's stock market has been undergoing a stunning run this year, aided by sound corporate earnings and hopes for a set of stimulus measures under President Moon Jae-in and an overall recovery in economic conditions, although it faced some corrections due to a series of provocations by North Korea.

The country's benchmark index, the KOSPI, has gained some 19 percent so far this year, to end at 2,406.50 points Thursday, after hitting an all-time high of 2,453.27 points on July 25.

Analysts said margin debt may further rise down the road as the country's stock market is expected to build up further gains, reaching up to the 2,600-point level.

sam@yna.co.kr
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