Hanmi Semiconductor. (Photo = Hanmi Semiconductor)

 

[Alpha Biz= Paul Lee] Short-selling balances on South Korea’s main stock market have surged to a record high as geopolitical tensions linked to the Iran conflict persist.

According to the Korea Exchange on April 14, the total net short-selling balance on the KOSPI stood at KRW 16.93 trillion as of April 10, marking an all-time high.

Short-selling balances first surpassed KRW 16 trillion on March 25 before declining to the KRW 14 trillion range by the end of the month. However, they have resumed an upward trend in April.

As of April 10, the stock with the largest short-selling balance was Hanmi Semiconductor at KRW 1.80 trillion, followed by Hyundai Motor Company (KRW 1.73 trillion), LG Energy Solution (KRW 1.25 trillion), and Mirae Asset Securities (KRW 873.3 billion).

Short selling is an investment strategy in which investors borrow shares to sell them first, aiming to buy them back later at a lower price to profit from a decline. The net short balance represents the value of shares sold but not yet repurchased.

An increase in short-selling balances is generally interpreted as a sign that more investors expect stock prices to fall. However, some analysts caution against excessive bearish positioning, noting that war-related risks may have already peaked.

 

 

 

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