As the domestic stock market showed weakness with high volatility and investor sentiment froze, the transaction value and volume on the KOSPI market fell to their lowest levels this year.
According to the Korea Exchange (KRX) on the 9th, the KOSPI market's average daily transaction value so far this month came to 2.6277 trillion won. That is the lowest level this year.
The KOSPI's average daily transaction value started at 2.7056 trillion won in January, then held around 3 trillion won with 3.2234 trillion won in February, 3.0143 trillion won in March, and 2.9551 trillion won in April.
It then surged to 5.0215 trillion won and 5.0347 trillion won in May and June, when the market jumped. But it fell to 3.6875 trillion won last month as volatility widened, and this month it has shrunk to 71.26% of the previous month's level.
Transaction volume also dropped sharply. The average daily volume this month was only 301,667,000 shares, marking the lowest level of the year.
This is seen as the result of a continued weak trend, with the KOSPI index down 5.10% this month and sidecars triggered twice. In particular, Samsung Electronics(005930) and SK hynix(000660), the market leaders that have driven the rally, each fell 12.00% and 17.23% this month, leading the index lower. With concerns persisting that the semiconductor cycle has passed its peak, the delay in the two corporations' shareholder return plans compared with market expectations added pressure.
External risks also appear to have worsened sentiment. As tensions between the United States and Iran have dragged on, restricting navigation on key oil shipping lanes, international oil prices rebounded and inflationary pressures intensified. As a result, the U.S. 10-year Government Bonds yield jumped to near 4.7%, and with the Federal Reserve (Fed) seen as possibly raising rates, market pressure seems to have increased.