The number of companies listed on the local stock markets plunged to a 26-month low in October amid a protracted global economic slowdown, data showed Tuesday.

According to the data by the Financial Supervisory Service and the Korea Exchange, the number of listed firms on the main bourse and the secondary market reached 1,792 as of the end of last month, the lowest since 1,785 firms were tallied at end-August 2010.

The main bourse held 786 companies at end-October, down 5 firms from end-2011, the data showed. The tech-heavy secondary KOSDAQ market held 1,006 companies, losing 25 firms over the cited period.

The decline came as the prolonged economic slowdown dented business sentiment of local firms, which delayed their listings on the local bourse, market watchers said.

“The weak performance of the global economy usually reduces the number of newly added listed firms, while more companies face delisting from the market,” said Choi Suk-won, an analyst at Hanwha Investment & Securities Co.

The number of newly added listed firms declined to 28 companies through October of this year, down 51 percent from 58 businesses added a year earlier, the Korea Exchange said.

On the other hand, 60 companies were delisted from the local stock markets over the cited period, mostly due to capital impairments and bankruptcies, the data showed.

Meanwhile, market watchers said the number of companies listed on the secondary market may dip below the 1,000 mark for the first time since September 2007 as the prolonged bear market forced local firms to delay their initial public offerings.

South Korean firms raised a total of 371.8 billion won ($340 million) via IPOs through September this year, down 80 percent from 1.8 trillion won tallied a year earlier, the data added.

“The downward drift in the number of the listed firms will likely to continue down the road due to the sluggish global economy,” Choi added. (Yonhap News)