KOSPI slump pushes trading activity to yearly low

Trading value and volume on the KOSPI have plummeted to their lowest levels of the year, as the benchmark index continues its decline, according to data released on Sunday. The Korea Exchange reported that the average daily trading value on the KOSPI this month stood at 26.28 trillion won ($18.6 billion). In January, the average daily trading value was 27.06 trillion won, hovering around 30 trillion won in February, 32.234 trillion won in March, and 30.143 trillion won in April.

It surged above 50 trillion won in May and June, reaching 50.22 trillion won and 50.35 trillion won respectively, following a sharp rally. However, trading value has since fallen to 36.88 trillion won in July and further declined this month. Trading volume has also plummeted, with the average daily volume falling to a year-to-date low of 301.67 million shares.

The sharp decline in trading activity seems to be a reflection of the KOSPI's persistent weakness in August. The benchmark index has declined 5.10 percent so far this month, with sidecars activated twice. The two semiconductor heavyweights have been particularly hard hit.