The trading volume on Korea’s primary stock market rebounded to the 6 trillion won range for the first time in about three months. As stock trading has become brisk, the stock index has also been on the rise.
According to Korea Exchange, the trading volume on the KOSPI market reached 6.322 trillion won on Nov. 14, exceeding 6 trillion won for the first time in three months since Aug. 8 (6.77 trillion won). The volume has continued to decline since early August as the trade dispute between the United States and China has worsened. It dropped to 2.924 trillion won in September. The KOSPI trade turnover had not recovered until October but rebounded to the 5 trillion won range this month before surpassing 6 trillion again on Nov. 14.
The recovery is attributed to the news reports that concerns about U.S. economic recession have somewhat eased. In testimony given on the previous day before the Joint Economic Committee, Federal Reserve Chairman Jerome Powell said that the U.S. economy is in good shape and is going to continue to expand.
The transaction volume grew, but foreign investors’ net sales continued for six trading days in a row. Foreign investors sold 207.6 billion won worth Korean shares on Nov. 14, fueling a drop in the index, but institutional investors aggressively defended it through net purchases. Meanwhile, the KOSPI index closed at 2,139.23 on Nov. 14, up 0.79 percent (16.78 points) from the previous day, boosted by a rise in trading volume.