“Western ants” bought video game retail shop GameStop stocks worth more than 150 billion won a day in the battle between the short stock sellers and individual investors. It is worrisome as domestic investors may take the fall with GameStop stock in the dramatic price swings.
According to the Korea Securities Depository, the trading amount of GameStop stocks through the institution was 139.68 million dollars (some 156 billion won) as of Friday. It is the biggest trading amount, even bigger than that of Tesla (123.86 million dollars), the most owned overseas stocks in Korea. The number is more than twice of Apple’s trading amount (66.32 million dollars), which is the third.
“Western ants” became net sellers on Friday. It is interpreted as a move to take profits as the stock price soared. The net sales amount of the ants as of Friday was 53.96 million dollars (some 60.4 billion won). This represents the trading amount of Tuesday in local time. Considering that the price of GameStop stocks was around 40 to 70 dollars between January 21 to 25, Korean investors who had purchased before Tuesday at a low price rushed in to take profits.
The price of GameStop stocks is showing high volatility, which is a result of American retail investors’ buy race against short sellers including hedge funds. The stock price is projected to wildly fluctuate for a while, which would increase investor risks.
Hee-Chang Park email@example.com