(Seoul = Yonhap News) Reporter Lim Eun-jin = As investment sentiment weakened due to the surge in oil prices and interest rates, the average daily trading value of the KOSPI market this month hit the lowest level this year.
According to the Korea Exchange and Yonhap Infomax on the 16th, the average daily trading value of the KOSPI market this month is 20.968 trillion won.
This is the lowest monthly level this year.
The average daily trading value showed a generally increasing trend starting from 27.56 trillion won in January, reaching 50.347 trillion won in June.
Afterwards, the transaction value decreased to 36.875 trillion won in July and 25.846 trillion won in August.
Compared to June, when it was at its peak, the average daily trading value this month has decreased by more than 50%.
In particular, the KOSPI market trading volume on this day was 15.855 trillion won, the lowest on a daily basis this year.
The average daily trading volume this month was 303 million shares, the lowest of the year.
This appears to be the result of a freeze in investment sentiment as the unfavorable macro environment was highlighted this month and concerns about AI technology stocks, which have been driving the KOSPI, resurfaced.
Due to the prolongation of the war between the United States and Iran, international oil prices have exceeded $100, and government bond interest rates have also surged due to the resulting rise in prices, leading to a series of policy rate hikes in major countries.
In particular, the interest rate on 10-year U.S. Treasury bonds, a global interest rate benchmark, has remained at a high level, breaking the 5% level, which was considered a 'psychological resistance level' the previous day, and is exerting a significant burden on the domestic stock market.
The Bank of Korea already raised its benchmark interest rate twice in a row last month, and the European Central Bank (ECB) also recently raised its interest rate.
It is predicted that the Bank of Japan (BOJ) will raise interest rates this week, and the possibility of the U.S. Federal Reserve (Fed) raising interest rates is also growing.
In addition, as the heads of major AI companies recently came out with a theory of speed control, semiconductor stocks with a large presence in the KOSPI, such as Samsung Electronics [005930] and SK Hynix [000660], showed a sluggish trend and trading itself decreased.
Lee Gyeong-soo, a researcher at Hana Securities, said, “The market has lost vitality due to increased interest rate volatility, continued preference for safe assets, and individuals selling to make up for it.”
He pointed out that although short-term cyclical buying is observed, this is based on excessive falls in stock prices and is not a structure in which supply and demand flow steadily into specific stocks.
Han Ji-young, a researcher at Kiwoom Securities, also pointed out, “The current downward pressure on stock prices is largely in the nature of a temporary increase in market caution amidst the uncertainty of the September FOMC (Federal Open Market Committee) and the noise of AI investment reduction.”
However, he said, "Unless there is a shock that is enough to express the intention to begin the tightening cycle in earnest, such as by further raising the dot plot at the September FOMC scheduled for the early morning of tomorrow (17th), additional adjustment pressure from the Federal Reserve will be limited."
