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| A currency trader walks by screens showing foreign exchange rates at a foreign exchange dealing room in Seoul, May 13. Korea's main stock market saw its trading volume shrink more than 16 percent this month from a year earlier. AP-Yonhap |
Korea's main stock market saw its trading volume shrink more than 16 percent this month from a year earlier, data showed Monday, as investors remained on the sidelines amid inflation worries and other negative factors.
The daily trading volume of the country's main bourse averaged 940 million shares during 10 sessions between May 2 and Friday, down 16.4 percent from a year ago, according to the data from the Korea Exchange.
In particular, the average daily trading volume of the top 10 caps, excluding major battery maker LG Energy Solution, tumbled nearly 40 percent over the cited period.
Pharmaceutical giant Samsung Biologics posted the biggest year-on-year drop of 87.3 percent, trailed by steel titan POSCO Holdings with 63.5 percent and leading automaker Hyundai Motor with 45 percent.
Analysts attributed the drop in trading volume to monetary tightening in major economies, concerns over U.S. inflation, and a possible downturn in the world's largest economy, which spooked investors and left them in a wait-and-see mode.
Trading volume of a stock market tends to decline on a bullish market and vice versa.
Amid growing market volatility, the benchmark KOSPI plunged to a one-and-a-half low of 2,550.08, Thursday, before bouncing back a day later.
U.S. consumer inflation soared 8.3 percent in April from a year earlier, well above market forecasts of 8.1 percent, stoking worries over America's economic downturn.
Making matters worse, seesawing cryptocurrencies in major bourses across the globe have further disheartened stock investors here, market watchers said.
They voiced concern a rebound in South Korea's key stock index may not be on the horizon for the time being, as U.S. inflation is unlikely to level off in a short period of time, given the Fed's tight policy, the war in Ukraine and China's COVID-19 lockdowns in major cities. (Yonhap)
