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High-frequency stock trading rising on market bull run

2015/04/26 10:58

SEOUL, April 26 (Yonhap) -- High-speed stock trading has been on the rise on South Korea's main bourse this year thanks to the market's bullish run, accounting for nearly 40 percent of all trading volume, data showed Sunday.

High-frequency trading came to 11.34 billion shares between Jan. 4 and Thursday, or 37.1 percent of the trading volume recorded in the cited period, according to the data by the Korea Exchange (KRX).

The percentage of high-frequency trading was up 5.54 percentage points from the same period last year. Retail investors carried out the bulk of high-frequency trading.

In high-frequency trading, investors rely on computer programs and specialized hardware to trade securities in a very short time period, even as brief as a second, to maximize profits.

The data also showed high-frequency trading made up 19.9 percent of the total turnover recorded during the cited period, up from 14.4 percent a year earlier.

A KRX official attributed the rise in high-frequency trading to the stock market's bull run. "High-frequency trading appears to be rising amid the brisk stock market."

   The South Korean stock market has been on a roll, bolstered by ample global liquidity and growing expectations for corporate earnings.

In mid-April, the benchmark Korea Composite Stock Price Index (KOSPI) broke through the psychologically important 2,100-point level for the first time in nearly four years.

The key index closed at 2,159.8 on Friday, up 16.3 points, or 0.76 percent, from a week ago, marking a four-week winning streak. Analysts expect the bourse to maintain its upward trend this week, driven by liquidity and strong foreign buying.