The Korea Herald

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Monthly stock trading dips below W100tr

By Korea Herald

Published : Aug. 7, 2012 - 20:39

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Korea’s monthly stock trading volume has remained below the 100 trillion won ($88.6 billion) mark for four straight months this year as global uncertainties arising from the debt-ridden eurozone are sapping investor appetites, data showed Tuesday.

The monthly trading turnover of stocks listed on the main bourse stood at 90.5 trillion won as of the end of July, according to the data by the Korea Exchange and the Korea Financial Investment Association.

Trading turnover figures had stood above the 100 trillion level from March of 2010, before they slid under 100 trillion won from April onwards and fell to a low of 81 trillion won in June.

The corresponding figure for the secondary KOSDAQ fell below 40 trillion won during the four months, the first time it has dropped to such a level since June of 2011, the data showed.

Market watchers said the slump in the stock market came as investors shun increasing risky bets largely due to a continuing range-bound trend.

Investors became more active with equity purchases when the stock market demonstrated a clear course, they said. When the eurozone turmoil surfaced in August last year, prompting the key index KOSPI to plummet, the monthly trading turnover rose to 143.8 trillion won.

Meanwhile, the turnover of margin lending, the amount of money investors borrowed from brokerages to buy stocks, reached a yearly-low of 3.81 trillion won as of Aug. 3, according to the investment association. (Yonhap News)