With the KOSPI topping the 6,000 mark for the first time ever last month, the average daily transaction value also surpassed 30 trillion won for the first time.

In the afternoon on the 25th, employees hold a celebratory ceremony at the dealing room of KB Kookmin Bank in Yeongdeungpo-gu, Seoul, as the KOSPI closes above 6,000 for the first time ever. /Courtesy of News1

According to the Korea Exchange (KRX) on the 2nd, the KOSPI's average daily transaction value in February came to 32.234 trillion won. That set a new record, up 19% (5.178 trillion won) from January's 27.056 trillion won.

The gains are seen as being driven by a tailwind for U.S. tech stocks and the passage of the government's third amendment to the Commercial Act, fueling a daily record high rally. In February, the KOSPI topped 6,000 for the first time ever and crossed 6,300 a day later.

By stock, transactions were concentrated in large semiconductor names such as Samsung Electronics and SK hynix. The average daily transaction value last month for Samsung Electronics, SK hynix and Samsung Electronics preferred was 10.502 trillion won, accounting for 33% of the total KOSPI transaction value.

Turnover in the stock market was also brisk. The KOSPI's turnover ratio in February was 28%, a 55% surge from January's 18.13%. That is the highest level in 3 years and 10 months, since April 2022 (35.02%). The turnover ratio is calculated by dividing the transaction volume over a given period by the number of listed shares; the higher the figure, the more active the trading.

Brokerages expect the KOSPI to rise in the long term but say it could take a "breather" in the short term. Yu Myeong-gan, a researcher at Mirae Asset Securities, said, "The KOSPI's 12-month forward price-earnings ratio (PER) is 10.4 times, around the historical average, but excluding Samsung Electronics and SK hynix, the PER is 13.2 times and the price-to-book ratio (PBR) is 1.27 times, raising valuation burdens."

However, Lee Kyung-min, a researcher at Daishin Securities, noted, "The current KOSPI is rising mainly on upward revisions to earnings forecasts in the semiconductor sector, differentiating it from past phases driven by liquidity," and projected, "The trend of the record high will not reverse."

※ This article has been translated by AI. Share your feedback here.