The Korea Herald


Credit loans for stock purchases reach yearly high

By 김다솔

Published : July 30, 2016 - 13:31

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Credit loans extended to local stock investors continued to rise this week, reaching the highest level since the start of the year, industry data showed Saturday.

Outstanding loans to stock investors reached over 7.53 trillion won ($6.7 billion) as of Thursday after the amount increased for eight consecutive sessions since last Tuesday, according to the data from the Korea Financial Investment Association.

The sharp increase apparently follows recent advances in the stock market.

The benchmark Korea Composite Stock Price Index closed at 2,016.19 on Friday, gaining 2.9 percent from a week earlier. The index has stayed well above 2,000 after breaching the psychologically important level on July 13.

"It is currently not at a point to be called overheated investment as the rate of increase in credit purchases is not as high as the one seen last summer, but some retail investors do appear to be acting impatiently while searching for quick gains," Mirae Asset Daewoo analyst Kim Hak-gyun said. (Yonhap)