KOSPI Trading Value Plummets... October Daily Average 11.7 Trillion Won, Lowest in One Year

Less than half of January's 26 trillion
Fell below 10 trillion for the first time since last November
Amid external headwinds, KOSPI stalls as 'watchful waiting' continues

On the 29th, the KOSPI index is displayed on the electronic board inside the dealing room of the Hana Bank headquarters in Myeongdong, Jung-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSPI has struggled to maintain its upward momentum and has stalled around the 3000-point mark, with trading volume falling to its lowest level in a year.

According to the Korea Exchange on the 31st, the average daily trading volume of the KOSPI in October was 11.7538 trillion won, the smallest amount since 10.847 trillion won in October last year. Compared to 26.4778 trillion won in January, it is only 44.4%, less than half. On the 22nd, the trading volume fell below 10 trillion won for the first time since November 2 last year, recording 9.0473 trillion won.

The market capitalization turnover rate (the ratio of trading volume to market capitalization), which indicates the frequency of 'ownership changes' among stock investors, also recorded its lowest level since January last year at an average of 10.29% in October. After rising to 24.87% in January and maintaining a range of 13-16% until August, it has been declining since last month.

Since KOSPI trading volume generally correlates with the index, the slowdown around the 3000-point level has led to reduced trading. Due to external negative factors such as supply chain disruptions, inflation concerns, and tightening moves by various countries, the KOSPI has struggled to trend upward, resulting in a continued 'wait-and-see market.'

Domestic 'blue-chip' stocks like Samsung Electronics and SK Hynix have also failed to recover their stock prices to early-year levels despite recently announcing record-breaking earnings. The monthly trading volume of Samsung Electronics shares, the 'big brother,' was in the 2-3 trillion won range in the first quarter but dropped to around 1.5 trillion won this month. SK Hynix's trading volume plunged from about 16.6 trillion won in January to approximately 5.9 trillion won this month.

This content was produced with the assistance of AI translation services.