Investors exchange less in Q1 amid uncertainties
SEOUL, April 4 (Yonhap) -- Investors exchanged less in the Korean stock markets in the first quarter compared with the two previous quarters as they remained cautious amid uncertainties regarding China's volatile stock market and the United States' rate moves, the main bourse said Monday.
The value of stocks traded on the main KOSPI and tech-heavy KOSDAQ markets fell to a daily average of 7.867 trillion won (US$6.7 billion) during the January-March period. It is down from 8.028 trillion won in the fourth quarter and 9.438 trillion won in the third quarter, according to the Korea Exchange (KRX).
By month, the combined daily average for both markets continued to fall to 7.529 trillion won in March from 8.307 trillion won in January, the KRX said.
On March 30, KOSPI regained the psychologically important 2,000 level for the first time this year. But analysts said any strong upward momentum is needed to further buoy the benchmark index, which was trading at 1,974.61 as of 11:10 a.m.
"Foreigners may remain net buyers of domestic stocks as they seek higher returns from investments in emerging-market stocks. But investors now look to first-quarter earnings results due out starting this month," Bookook Securities Co. analyst Kim Sung-hwan said.
As companies look set to release worse-than-expected earnings due to weak global demand, the analyst said he doesn't expect KOSPI to stabilize at above 2,000 for the time being.