Stock Short Selling On Rise Despite Market Upturn

Seoul: 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 Yonhap News Agency, the data from the Korea Exchange (KRX) indicates that outstanding short selling reached some 19 trillion won (US$13.4 billion) as of Tuesday, marking an increase of 14 percent, or 2.27 trillion won, from 16.73 trillion won at the end of last month. Stock short selling had been at 15 trillion won at the end of February but declined to 12 trillion won in early March. The figure saw a significant rise to 23 trillion won in early June. So far this month, the country's benchmark Korea Composite Stock Price Index (KOSPI) advanced by 6 percent, and the secondary, tech-laden KOSDAQ index surged 20 percent. The country's stock market had experienced a crash last month due to concerns over the profitability of AI-related investments, potentially reducing demand for chips. However, investors remain apprehensive about the rapid rise and are uncertain whether the chipmaking sector has reached its peak.