The average daily transaction amount in the domestic stock market shrank to 16 trillion won. Compared to over 21 trillion won in February, this represents a decrease of more than 20% in just over two months. This is interpreted as a result of the lack of buying momentum in large export stocks such as semiconductors and automobiles due to tariff uncertainties from the United States.
According to the financial investment industry on the 27th, the average daily transaction amount combined from the Korea Exchange (stock market and KOSDAQ) and Nexttrade (main market), which launched earlier this month, stood at about 16.816 trillion won, reflecting a 5.2% decrease (9.23 trillion won) compared to last month's 17.739 trillion won.
This year, compared to the average daily transaction amount of 21.18 trillion won recorded in February, there has been a reduction of about 20.6% in just two months, or a decrease of 4.364 trillion won. In particular, the average daily transaction amount for large-cap KOSPI stocks is 5.547 trillion won, down 28% from last month's 7.749 trillion won.
The decrease in foreign buying momentum for large export stocks such as semiconductors and automobiles, which support the domestic stock market, has had a negative impact due to the tariff war initiated by the United States. Foreign institutional investors were reported to have net sold 9.7938 trillion won worth of stocks in the securities market from the 1st to the 25th of this month.
Given the situation, the domestic stock market has transformed into a trading market centered on small-cap stocks led by individual investors. In fact, the average daily transaction amount for small-cap stocks, those ranked below 300 in market capitalization, was 1.223 trillion won, an increase of 23% compared to last month's 997 trillion won.
The increase in transaction amounts for small-cap stocks was led by politically themed stocks. Sunny Electronics is a representative example. This month, the average daily transaction amount for Sunny Electronics, referenced as a theme stock for Ahn Cheol-soo, a candidate in the People Power Party's presidential primary, surged to 29.473 billion won, approximately 26 times last month's 1.119 billion won.
The average daily transaction amounts in this month for Pyung Hwa Holdings, identified as a theme stock for Kim Moon-soo, a candidate in the People Power Party's presidential primary, and e-STARCO, a theme stock for Lee Jae-myung, a candidate in the Democratic Party of Korea's presidential primary, have also sharply increased. Each has been reported to have risen to five times and two times last month's levels, respectively.
Meanwhile, securities experts are analyzing that it is difficult to expect a clear rebound in large-cap stock prices for the time being. With semiconductor tariffs scheduled for May and mutual tariffs on July 8, it appears that a transition to 'buy' by foreign investors and an improvement in investment sentiment will not be easy.