KOSPI breaks through 7,000 points, individual investors' large orders surge by 53%

As the KOSPI index surpasses the 7,000-point mark and continues to hit new record highs, the phenomenon of individual investors placing orders exceeding 100 million won has significantly increased. Against the backdrop of a strong index rally, well-capitalized individual investors are actively buying mainly semiconductor large-cap stocks.

According to the Korea Exchange, in April of this year, there were a total of 1,193,158 large orders over 100 million won from individual investors in the securities market, setting a monthly record. The previous record was 1,153,301 orders in January 2021, which was broken after about 5 years and 3 months. Compared to 1,021,744 orders in March, this represents a 16.8% increase. Market analysis suggests that at that time, the KOSPI index surged about 30% within a month due to expectations of the end of the Iran war and stellar performance of large semiconductor stocks, greatly boosting investor confidence.

This trend further intensified in May. From the 1st to the 7th of this month, the average daily number of large orders over 100 million won from individual investors reached 83,067, a 53% increase from the monthly average of 54,234 in April. The KOSPI index broke through the 7,000-point threshold for the first time in history and continued its upward momentum, which is interpreted as funds rushing in with expectations of further gains. Large orders are generally seen as indicators of high-net-worth individuals or active short-term traders’ movements.

Orders are especially concentrated in leading semiconductor stocks. In April, the stock with the most individual large orders was Samsung Electronics, with 202,025 orders, followed by SK Hynix with 142,668 orders. The combined order volume of these two stocks accounted for 30% of the total individual large orders in the previous month. Analysts believe that market expectations for an improvement in the memory semiconductor industry have strengthened, and both companies posted record-breaking first-quarter performances, which stimulated buying. Following these, the stocks with the next highest order volumes were Daewoo Construction (56,143), Samsung SDI (26,155), Hyundai Motor (24,475), and Daehan Electric Wire (24,400). As of the 7th in May, Samsung Electronics (47,418 orders) and SK Hynix (32,628 orders) still maintained leading positions.

In the securities industry, many opinions suggest that the semiconductor sector has further upside potential. SK Securities recently pointed out that the strength of the memory industry could become long-lasting, and raised target stock prices for Samsung Electronics and SK Hynix to 500k won and 3 million won, respectively. However, some also advise caution, noting that given the sharp short-term rise in stock prices, investors should be wary of blindly chasing gains. Since recent months have repeatedly shown a pattern of sharp rises at the start of the month followed by consolidation, strategies that utilize short-term fluctuations to adjust buying positions may be more effective. It is expected that this trend in the short term will largely depend on whether semiconductor performance and the upward momentum of the KOSPI can be maintained, but within volatile ranges, managing investment pace will also become equally important.