KOSPI slump pushes trading activity to yearly low

Trading value and volume on the KOSPI have plummeted to their lowest annual levels, as the benchmark index continues its downward trajectory due to a slump in semiconductor giants, data revealed on Sunday. The Korea Exchange reported that the average daily trading value for the KOSPI this month was 26.28 trillion won ($18.6 billion), a stark contrast to January's 27.06 trillion won, February's 30 trillion won, March's 32.234 trillion won, and April's 30.143 trillion won.

A surge propelled the KOSPI above 50 trillion won in May and June, peaking at 50.22 trillion won and 50.35 trillion won, respectively. However, trading value has since plummeted to 36.88 trillion won in July and further this month. Correspondingly, trading volume has also nosedived, with the average daily volume dipping to a yearly low of 301.67 million shares.

This sharp decline in trading activity appears to be a direct result of the KOSPI's persistent weakness throughout August. The index has plummeted 5.10 percent so far this month, with sidecars triggering twice.