KOSPI Sees Record Average Daily Trading Volume of $20.7 Billion in February
Synopsis
Key Takeaways
Seoul, March 2 (NationPress) In February, the average daily trading value on South Korea's main stock exchange soared to a historic level of over 30 trillion won ($20.7 billion), mainly fueled by a surge in semiconductor stocks.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped past the 6,000-point threshold on Wednesday, just weeks after crossing the 5,000 mark, as reported by Yonhap news agency.
According to the Korea Exchange (KRX), the average daily turnover on the KOSPI market reached 32.23 trillion won last month, which is a 19 percent increase from 27.06 trillion won the previous month.
Market analysts have linked this surge to increasing optimism regarding the global semiconductor sector, as well as expectations for pro-business government policies in Seoul.
Trading activity has been heavily focused on major technology firms, particularly Samsung Electronics Co. and SK hynix Inc.
The combined average daily turnover of these two semiconductor giants was 10.5 trillion won in February, which represented 33 percent of the total trading value on the KOSPI.
Experts have warned that a correction may be on the horizon following the recent rapid gains, although many anticipate that the upward trend could persist for some time.
They also pointed out uncertainties arising from escalating geopolitical tensions in the Middle East after the death of Iran's Supreme Leader Ayatollah Ali Khamenei due to military strikes by the United States and Israel, along with the evolving U.S. tariff policies under the Trump administration.
Lee Kyoung-min, an analyst at Daishin Securities, remarked, "The current rally in the KOSPI is distinct from previous liquidity-driven surges. The trajectory toward record highs is expected to continue, as recent gains are backed by favorable revisions to earnings projections for semiconductor firms."
In the meantime, South Korean companies with operations in the Middle East are urgently formulating response strategies amid rising tensions in the region following U.S.-Israeli actions against Iran, prioritizing employee safety and minimizing operational disruptions.
Key firms have held emergency meetings to ensure the safety of their personnel in the Middle East and to discuss measures to tackle potential challenges, given their significant presence in Iran, Iraq, the United Arab Emirates, and other nations in the region.