Seoul: The daily stock trading volume fell to the lowest of the year last month in South Korea as worsening market conditions spooked investors, data showed on Saturday.
The average daily trading volume of listed shares came to 16.67 trillion won ($12.36 billion) in September, the lowest since the start of the year, according to the data from the Korea Exchange, operator of South Korea’s main bourse.
The reading also marks an 8 per cent decline from 18.2 trillion won the previous month, reports Yonhap news agency.
The figure has been a steady decline since peaking at 22.74 trillion won in March, falling to 19.47 trillion won in July and then to 18.2 trillion won the following month.
The daily turnover ratio of listed shares also fell to the lowest in the year in September.
According to the bourse operator, the average daily turnover ratio of listed shares came to 1.02 percent last month, sharply down from 1.16 percent the previous month.
Meanwhile, Seoul shares closed slightly higher on Friday, snapping three consecutive sessions of losses, as investors hunted bargains despite the escalating tensions in the Middle East. The local currency sharply fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index moved up 0.31 percent, or 8.02 points, to 2,569.71.
Trading volume was moderate at 405 million shares worth 9.63 trillion won ($7.2 billion), with gainers outpacing losers at 462 to 412.
Foreigners bought a net 41 billion won worth of local shares, while institutions dumped a net 217 billion won. Individuals bought a net 70 billion won.
Investors have recently been moving toward safer assets amid the Middle East tensions, with some pundits anticipating Israel may soon strike oil facilities in Iran.
“The geopolitical risks in the Middle East, a hike in the crude prices and concerns over inflation will inevitably lead to a selling pressure,” Kim Ji-won, an analyst at KB Securities, said.
–IANS
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