KOSPI turnover hits 'record high' last month…tops 30 trillion won

Source

Korea Economic Daily

Summary

Last month, the KOSPI’s average daily turnover hit a record 32.234 trillion won, and the index was reported to have broken above 6,000 and 6,300.
33% of last month’s KOSPI turnover was concentrated in major semiconductor stocks such as Samsung Electronics and SK hynix, while the listed-share turnover ratio jumped to 28.0%.
Brokerages pointed to the potential for increased short-term volatility due to valuation burdens such as PER and PBR, Middle East geopolitical tensions, and tariff policy, while projecting that the record-high trend is unlikely to reverse.

Forecast Trend Report by Period

One-third of KOSPI turnover concentrated in semiconductor stocks

"Uncertainty in the stock market could increase going forward"

With the KOSPI on a relentless rally last month—breaking above the 6,000 mark for the first time ever—average daily turnover surpassed 30 trillion won for the first time on record.

According to Yonhap News on the 2nd, the KOSPI’s average daily turnover last month came to 32.234 trillion won, the highest ever. That was up 19% (5.178 trillion won) from January (27.056 trillion won). The index first crossed 6,000 on the 25th, and even climbed above 6,300 on the 26th.

Last month’s KOSPI turnover was largely concentrated in major semiconductor names such as Samsung Electronics and SK hynix. The average daily turnover in Samsung Electronics, SK hynix and Samsung Electronics preferred shares totaled 10.502 trillion won, accounting for 33% of total KOSPI turnover over the period.

Share turnover was also brisk. The KOSPI market’s listed-share turnover ratio stood at 28.0% last month, the highest in three years and 10 months since April 2022 (35.02%). It surged 55% from the previous month (18.13%).

The listed-share turnover ratio is calculated by dividing trading volume over a given period by the number of listed shares. A higher ratio means shares changed hands more actively.

While brokerages expect the KOSPI uptrend to continue over the longer term, they say the market could take a breather in the near term. After the recent sharp gains, analysts note the burden of a short-term peak.

Yoo Myung-gan, a researcher at Mirae Asset Securities, pointed out that "the KOSPI’s 12-month forward price-to-earnings ratio (PER) is 10.4x, in line with the historical average, but excluding Samsung Electronics and SK hynix, the PER is 13.2x and the price-to-book ratio (PBR) is 1.27x, raising valuation burdens."

With geopolitical tensions in the Middle East rising after Iran’s Supreme Leader Ayatollah Seyyed Ali Khamenei died in attacks by the United States and Israel, lingering uncertainty over the Trump administration’s tariff policy could also amplify near-term volatility.

Lee Kyung-min, a researcher at Daishin Securities, said, "The KOSPI is currently rising mainly on upward revisions to earnings forecasts for the semiconductor sector, differentiating this rally from past phases driven by liquidity," adding that "the trend of record-high levels is unlikely to reverse."

However, he noted, "The upward momentum in earnings forecasts could slow until the shareholders’ meetings at the end of March and ahead of the preliminary earnings season for the first quarter," and added that uncertainty factors—such as whether the hearing schedule for Kevin Warsh, the next chair of the Federal Reserve (Fed), will be finalized—could also heighten volatility.

Choi Soo-jin, Hankyung.com reporter naive@hankyung.com