SEOUL, Dec. 23 (Korea Bizwire) — Turnover of South Korea’s main bourse plumbed a 19-month low in December as retail investors flee stocks for higher returns, data showed Thursday.
The average daily turnover of the KOSPI market stood at slightly over 10 trillion won (US$8.39 billion) for 16 trading sessions till Wednesday, according to the data from the Korea Stock Exchange.
It was the lowest tally since May 2020, when the daily turnover came to 9.9 trillion won.
The figure was also down 15 percent from November and nearly half the average daily turnover in January and February this year.
Market watchers attributed the tumble in the daily turnover to individual investors’ flight from the local stock market in search of higher-yielding U.S. stocks or virtual assets.
Retail investors’ portion of stock transactions sank to the 50 percent level in December after remaining in the 60 percent range until September.
With the local bourse languishing, analysts said transactions by individual investors are widely expected to be weak for the time being.
Meanwhile, the average daily turnover of the secondary KOSDAQ market amounted to 11.2 trillion won this month, down from 12.6 trillion won in November but slightly up from October, according to the data.