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Stock Trading Volume Still Remains Low despite Sky-high KOSPI

May 01, 2017 09:44|May 01, 2017 09:44
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Despitethe KOSPI market nearing its record-high level, the stock trading volumeremains lower than a year ago. According to the Korea Stock Exchange on April30, the daily stock trading volume averaged at 4.58 trillion won this month,down 8.69 percent from a month ago. This figure is also down 2.46 percent comparedto a year before.

Itis fair to say that the stock trading remains less active, although thesentiment of the stock market is strong with the KOSPI surging by 2.09 percentfrom 2,160.23 in late March to 2,205.44 in late April.

 Whenit comes to the KOSDAQ market, the daily stock trading volume averaged at 3.46trillion won last month, up 14.29 percent from a month ago but down 0.17percent from a year earlier.

Korea'sstock trading volume was greatly contracted last year due to a string of uncertaintiesin and outside Korea, including the U.S. interest rate hike and the ChoiSoon-sil scandal that brought down the sitting President and the whole rulingparty.
Theuncertainty arising from the political scandal spilled over into the economicsector, strengthening investors' preference toward safer assets.