Korea’s main stock market saw its trading volume hit an all-time low in June on the worsening of the eurozone fiscal crisis and escalating concern over a global economic slump, market watchers said Monday.

The daily turnover of the main board averaged 4.53 trillion won ($3.98 billion) last month, a mere 0.38 percent of the market capitalization, according to the bourse operator Korea Exchange and industry sources.

June’s average daily turnover dropped to the lowest monthly level since the bourse operator began tracking the data in 2000.

The ratio of turnover to market capitalization also dropped to a record low.

The plunge in turnover was attributed to the persistent eurozone debt crisis and worries about a slump in the world economy, which made the local stock market more volatile.

Since March, the daily trading volume has been hovering below a 6.5 trillion won level that market watchers say enables securities companies to break even.

Analysts said the tumble in turnover has dealt a harsh blow to the bottom lines of local brokerage houses, which depend on commission income for nearly 40 percent of their revenue.

In order to tackle deteriorating profitability, local brokerage houses are expected to make full-fledged restructuring efforts, including job cuts, in the second half of the year, they predicted. 

(Yonhap News)