KOSDAQ Trading Volume Surpasses KOSPI... "High-Yield Investment Sentiment Attracts"

[Image source=Yonhap News]

[Asia Economy Reporter Junho Hwang] The daily trading volume of the KOSDAQ market has surpassed that of the KOSPI. As the KOSPI faltered, investors seeking high returns flocked to the KOSDAQ. Major events such as Coupang's listing on the New York Stock Exchange and allegations of false disclosures by HL Biopharma also appear to have energized the KOSDAQ market.

According to the Korea Financial Investment Association on the 19th, a reversal occurred from the 16th to the 17th, where the KOSDAQ trading volume exceeded that of the KOSPI. On the 16th, the KOSDAQ trading volume was 17.7702 trillion won, while the KOSPI's was 17.1713 trillion won. The KOSDAQ trading volume was 598.9 billion won higher than the KOSPI's. Although the gap narrowed slightly, on the 17th, the KOSDAQ trading volume was 17.218 trillion won, still surpassing the KOSPI's 16.8461 trillion won.

This reversal in KOSDAQ trading volume is the first occurrence this year. Trading volume serves as an indicator of how actively trading occurs in each market, showing that KOSDAQ trading was more active than KOSPI trading. The KOSDAQ trading volume also increased significantly from 298,548 shares on the 16th to 506,775 shares on the 17th.

The financial investment industry has focused on changes in investor sentiment. Individual investors who previously focused on large-cap stocks in the KOSPI have broadened their interest to small- and mid-cap stocks in the KOSDAQ. In particular, major events affecting the KOSDAQ contributed to this shift in investor sentiment. On the 12th, during the Lunar New Year holiday, news emerged that Coupang had filed a listing registration with the U.S. Securities and Exchange Commission (SEC), causing the stock prices of KOSDAQ companies related to Coupang to surge after the holiday. These companies include KTH, Galaxia Money, Danal, Mirae Life Resources, Shuttle Bank, and Showbox.

Controversy over HL Biopharma, which was the third-largest by market capitalization on the KOSDAQ, falsely disclosing clinical trial results of the anticancer drug ‘Lenvatinib’ also fueled KOSDAQ trading. On the 15th, HL Biopharma's market capitalization was 4.85 trillion won, ranking third, but one day after the controversy erupted, 1.32 trillion won evaporated, dropping it to eighth place. On the same day, HL Biopharma Life Science and HL Biopharma Pharmaceutical also experienced declines exceeding 20%.

Hwang Sewoon, a research fellow at the Korea Capital Market Institute, said, "Considering market capitalization and the number of tradable shares, it is normal for the KOSPI's trading volume to be higher than the KOSDAQ's." He added, "The reversal phenomenon where the KOSDAQ trading volume exceeds the KOSPI's indicates that in a liquidity-driven market, risk-seeking investors aiming for high returns are increasing."