Kospi loses dynamics as gowth slows at homeUpdated: 2014-07-01 14:00:13 KST
It seems like a pause button has been pushed on the Korean stock market.
The Korea Exchange says that the nation's benchmark KOSPI is losing its dynamics, with the market volatility in the first half of the year hitting its lowest point since 1990, when the market first opened.
The index measuring the volatility of the market stood at a mere zero.6.
The market is less volatile as it approaches zero.
The figure was at over 2 in the second half of 2011, but has continued on a downward trajectory since then.
The market volatility from 1990 until June this year stood at over one-and-a-half, reflecting how stagnant the market was in the first six months of the year.
[@CG:19058]} And it's not just the dynamics, but also the number of transactions that remain subdued.
The number of average daily transactions on the KOSPI came in at around 23-million in the first half of the year, which marks the lowest level in seven-and-a-half years.
Analysts say the slow growth at home coming from sluggish domestic demand and slowing exports due to the strong local currency is keeping the stock market from perking up.
They add that the outlook for the second half does not look that bright either as they expect disappointing earnings from major listed companies like Samsung Electronics and Hyundai Motor.
Hwang Ji-hye, Arirang News.
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