This month's KOSPI volatility is at the highest level of the year. On the 3rd, the KOSPI crossed the 4,200 level to hit a record high, then plunged on a U.S.-driven artificial intelligence (AI) bubble debate, showing a "roller-coaster market."
According to the Korea Exchange (KRX) on the 9th, the KOSPI's average daily volatility this month (the 3rd–6th) was tallied at 2.36%. The average daily volatility was the highest even compared with April (2.07%), when the country entered an early presidential election phase.
KOSPI daily volatility refers to the standard deviation of day-to-day closing price returns. It shows how far the KOSPI's daily closing price change from the previous day deviates from the average, and a higher daily volatility means greater stock price fluctuations. Along with intraday volatility (the ratio obtained by dividing the difference between the day's high and low by the average of the high and low), it is a key indicator of stock market volatility.
This month, the KOSPI swung between hot and cold even within a day. On the 3rd, the KOSPI started at 4,123.36 and climbed to an intraday record high of 4,221.92. The gap between the low and the high reached 2.4%.
On the 4th, the next day, heavy foreign selling pushed it down to 4,117.91, 2.6% lower than the high (4,226.75). On the 5th, when trading opened at 4,055.47, the index at one point fell to 3,867.81 (-4.9%) intraday. On the 6th–7th, the gap between the low and the high came to 3.2% and 3.9%, respectively, continuing the "see-saw market."
Experts said that with many domestic and external variables affecting the market, stock volatility is likely to remain elevated.