Will S. Korean stock market continue its wild ride in 2021?
- 3 years ago
백신 랠리 언제까지?...코로나19 속 주식 트렌드 및 새해 전망
Global stock markets have seen incredible returns for investors in 2020, with the South Korean stock market hitting an all-time high.
They're encouraged by low interest rates and government policies to support businesses... which have boosted sentiment.
But will this trend continue in 2021?
Kim Sung-min has the details.
South Korea's KOSPI passed several milestones this year, and hit an all-time high of 2,800.
Behind this trend was the massive inflow of new individual investors,...who saw the sudden collapse of stock prices in March as an opportunity to enter the market.
They were also encouraged by low interest rates and the government's policies to support liquidity.
Kiwoom Securities, which has the largest number of private investment customers in Korea, saw around 3-point-2 million new accounts in 2020,... four times that of the previous year.
And many of these investors rushed to buy stocks in four sectors.
"I'd like to explain with the keyword, BBIG: batteries, bio, internet and games. These sectors dominated the Korean stock market during the rebound from the pandemic. Most of them have benefited from the non-contact transformation."
Vaccines for COVID-19 are another game changer for the stock market.
With growing optimism that life can return to normal, stocks that were hardest hit by the pandemic are starting to recover.
On Christmas Eve, when the KOSPI surpassed the 2,800 mark,... stocks in travel, aviation, theme parks, movies and duty free saw the largest daily growth after semiconductors.
And it's not just the Korean stock market that's booming.
The total size of global stock markets amounted to some 1-hundred-point-two trillion U.S. dollars as of December 18th,...up 17 percent on-year.
Experts say optimism over a vaccine is likely to keep boosting global stock markets in 2021.
"I expect 2021 to become a very good market because an economic recovery is expected following the pandemic. And technology stocks are forecast to grow rapidly in 2021,... further accelerating the rally in the markets."
However, the expert warns that the actual progress of vaccination could affect the pace of market recovery.
Developed countries that started vaccinations earlier will get back to normal faster,... seeing their markets growing.
Market watchers assume however that South Korea is likely to still benefit through increased exports to those revived markets.
Kim Sung-min, Arirang News
Global stock markets have seen incredible returns for investors in 2020, with the South Korean stock market hitting an all-time high.
They're encouraged by low interest rates and government policies to support businesses... which have boosted sentiment.
But will this trend continue in 2021?
Kim Sung-min has the details.
South Korea's KOSPI passed several milestones this year, and hit an all-time high of 2,800.
Behind this trend was the massive inflow of new individual investors,...who saw the sudden collapse of stock prices in March as an opportunity to enter the market.
They were also encouraged by low interest rates and the government's policies to support liquidity.
Kiwoom Securities, which has the largest number of private investment customers in Korea, saw around 3-point-2 million new accounts in 2020,... four times that of the previous year.
And many of these investors rushed to buy stocks in four sectors.
"I'd like to explain with the keyword, BBIG: batteries, bio, internet and games. These sectors dominated the Korean stock market during the rebound from the pandemic. Most of them have benefited from the non-contact transformation."
Vaccines for COVID-19 are another game changer for the stock market.
With growing optimism that life can return to normal, stocks that were hardest hit by the pandemic are starting to recover.
On Christmas Eve, when the KOSPI surpassed the 2,800 mark,... stocks in travel, aviation, theme parks, movies and duty free saw the largest daily growth after semiconductors.
And it's not just the Korean stock market that's booming.
The total size of global stock markets amounted to some 1-hundred-point-two trillion U.S. dollars as of December 18th,...up 17 percent on-year.
Experts say optimism over a vaccine is likely to keep boosting global stock markets in 2021.
"I expect 2021 to become a very good market because an economic recovery is expected following the pandemic. And technology stocks are forecast to grow rapidly in 2021,... further accelerating the rally in the markets."
However, the expert warns that the actual progress of vaccination could affect the pace of market recovery.
Developed countries that started vaccinations earlier will get back to normal faster,... seeing their markets growing.
Market watchers assume however that South Korea is likely to still benefit through increased exports to those revived markets.
Kim Sung-min, Arirang News