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The secondary Korea Securities Dealers Automated Quotations (Kosdaq) market has recently been on a roll with its benchmark price index flirting with the 800-point level. The daily trading volume on the Kosdaq market surpassed 10 trillion won (US$9.16 billion) for the first time since its opening, bearing down the main Korea Composite Stock Price Index (Kospi) bourse. The balance of margin trade in the Kosdaq market now nears 5 trillion won (US$4.58 billion).
According to the Korea Exchange (KRX) on November 22, the daily stock trading volume in the Kosdaq market surpassed 9 trillion won (US$8.25 billion), closing at 9.22 trillion won (US$8.45 billion). Although the Kosdaq index slightly decreased to the 780 level on the same day, its daily stock trading volume surpassed 7.05 trillion won (US$6.46 billion) in the Kospi market.
On the previous day, the daily stock trading volume in the Kosdaq market came to 10.03 trillion won (US$9.19 billion), hitting the 10 trillion won (US$9.16 billion) market for the first time since its opening in 1996.
The daily average trading volume in the Kosdaq until the 21st stood at 6.1 trillion won (US$5.59 billion). The figure far exceeds 4.58 trillion won (US$4.19 billion) in February 2002 when it set an all-time monthly record.
Considering the fact that the daily average trading volume in the market until early this month totaled some 4 trillion won (US$3.66 billion), the figure more than doubled. The Kodaq index shoot up nearly 13 percent from the 700 level to the 780 level on the same day. With the index and trading volume rising, the balance of margin trade in the Kosdaq market hit a record high.
According to the Korea Financial Investment Association (KOFIA), the balance of margin trading in the Kosdaq market amounted to 4.9 trillion won (US$4.49 billion) as of the 20th, hitting a record high. The figure surged a whopping 100 billion won (US$91.62 million) in just three trading days from 4.8 trillion won (US$4.4 billion) on November 16.
With the current trend, the balance of margin trading in the Kosdaq is expected to surpass 5 trillion won (US$4.58 billion) as early as this week to next week at the latest.