Stock short selling on rise despite market upturn

Outstanding short selling on South Korea's stock market reached 19 trillion won ($13.4 billion) as of Tuesday, up 14 percent from 16.73 trillion won at the end of last month, according to data from the Korea Exchange (KRX), even as the KOSPI advanced 6 percent and the KOSDAQ index shot up 20 percent this month. Investors remain worried over the sharp rebound and uncertain whether the chipmaking sector has peaked after last month's crash in AI-related shares.

Stock short selling has been on the rise despite the country's stock market sharply rebounding from a rout caused by a crash in chipmakers and artificial intelligence AI -related shares, data showed Sunday. According to the data from the Korea Exchange KRX , outstanding short selling reached some 19 trillion won US$13.4 billion as of Tuesday, up 14 percent, or 2.27 trillion won, from 16.73 trillion won at the end of last month. Stock short selling stood at 15 trillion won at the end of February but fell to 12 trillion won in early March. The figure rose to 23 trillion won in early June. So far this month, the country's benchmark Korea Composite Stock Price Index KOSPI advanced 6 percent, and the secondary, tech-laden KOSDAQ index shot up 20 percent. The country's stock market had crashed last month amid woes over the profitability of the AI-related investment, which may reduce demand for chips. But investors remained worried over a sharp rise in a short period of time and are still uncertain whether the chipmaking sector has peaked. Yonhap