The KOSPI index has broken through the 9,000 mark and is cruising toward the "10,000 peak," but the market's internal trading fervor appears to be cooling. Since the start of this month, the average daily trading volume has instead been on the decline.
On the 23rd, according to the Korea Exchange (KRX) information data system, in the main board this month (June 1–19), the average daily transaction value came to 50.55 trillion won. The average daily trading volume was 514.71 million shares.
The KOSPI index, which finished the first trading day of this month at 8,788.38, broke through 9,000 points after 12 trading days. Although it experienced ups and downs in the middle, it did not fall below the 7,400 level on a closing basis.
Even as the KOSPI index's uptrend continued, the average daily trading volume actually fell from the previous month. In May, the average daily trading volume for the month was 698.79 million shares, which is 184.08 million more than June's average daily trading volume (514.71 million shares). The average daily transaction value slightly exceeded May's (50.215 trillion won) at 50.55 trillion won this month.
The average daily trading volume on the main board swelled to as much as 1.1 billion shares in March this year but has plunged recently. Even in January, the average daily trading volume was 550.01 million shares, then 1,048.44 million shares in February and 1,107.65 million shares in March before the trend reversed. After that, it was 947.18 million shares in April, 698.79 million shares in May, and 514.71 million shares in June.
The average daily transaction value also surged explosively in May, when the KOSPI rewrote 7,000 and 8,000 points. The average daily transaction value, which hovered between the 20 trillion–30 trillion won range—27.056 trillion won in January, 32.234 trillion won in February, 30.143 trillion won in March, and 29.551 trillion won in April—spiked to 50.215 trillion won in May. This month, it appears to have gone sideways, rising by only about 200 billion won.
Lee Sang-heon, Director General at iM Securities' research center, said, "When the number of rising stocks is large and the index goes up, trading volume increases, but at present the concentration into leading stocks is severe, so trading volume is declining."
In fact, on the 18th, when 9,000 points was first breached, there were only 109 rising stocks. The share of the transaction value for Samsung Electronics and SK hynix within the main board's transaction value has risen sharply. As of the 18th, the two stocks accounted for 53% of the KOSPI market's total transaction value. That is a significant increase compared with the start of the year (7%).
Hwang Ji-woo, a researcher at SK Securities, said, "Inflows were concentrated in a few memory semiconductor-related stocks such as Samsung Electronics, SK hynix, and SK Square, lifting the index," and noted, "This month, the weekly ratio of rising stocks in the domestic stock market is only 19.9%."
A person at a financial investment firm said, "Based on past cases, a rise not accompanied by trading volume is often vulnerable to maintaining the trend," adding, "However, the prevailing view is that there is no bad news warranting immediate selling or short positions in the market right now, so the index appears to be continuing to rise."