Trading Volume in Korean Stock Markets Shrink by 11% in April

Trading activity on the South Korean stock exchanges experienced a significant decrease of 11 percent in April compared to the previous month. This downturn was primarily attributed to a variety of factors causing market uncertainty, among which was the rising geopolitical tension from the Middle East.

April's Market Performace

According to recent data provided by the Korea Exchange (KRX), the total average daily trading volume across the KOSPI, KOSDAQ, and KONEX markets reached approximately 20.2 trillion won (roughly $14.6 billion) for the month of April. This figure represents a drop from the 22.7 trillion won reported in March, and a substantial 23 percent plunge from the 26.4 trillion won recorded in April of the previous year.

Investor Sentiment and Market Activity

Market analysts have indicated that the declining trading volume signals heightened caution among investors. Concerns about geopolitical escalations, specifically between Israel and Iran, as well as the impact of a strengthening U.S. dollar, have contributed to this cautious stance.

Another important market indicator, the stock market turnover ratio, also saw a decline to 9.28 percent in April from 10.5 percent in March, suggesting decreased trading activity relative to the market's overall size. Cho Joon-ki, a researcher at SK Securities, mentioned that post-trading events seem to have a greater effect on the market dynamics than those occurring during trading hours. He also noted an increase in investor fatigue linked to the ongoing volatility in the market.

Korea, Stocks, Volume