KOSPI volatility eases as August trading value nearly halves ahead of Fed decision

  • KOSPI average daily trading value fell to 25.77 trillion won in August.
  • KOSPI 200 volatility declined to 44.09 on Sept. 1 from 96.94 on June 29.
  • Foreign investors sold 10.18 trillion won of KOSPI shares in August.

South Korea’s KOSPI average daily trading value fell to 25.77 trillion won ($18.8 billion) in August, the lowest level of the year and roughly half June’s 50.35 trillion won, as volatility eased and investors awaited the U.S. Federal Reserve’s September rate decision. The KOSPI 200 Volatility Index fell to 44.09 on Sept. 1 from 96.94 on June 29, while sidecar activations declined to five in August from 15 in July and circuit breakers were not triggered. Investor deposits also fell to 98.7 trillion won from a record 139.69 trillion won. South Korean investors continued buying U.S. stocks, recording $1.96 billion in net purchases in August, while foreign investors sold 10.18 trillion won of KOSPI shares. Buybacks by Samsung Electronics and SK hynix partly offset the foreign selling, and analysts said futures purchases and broader gains across the market indicated that near-term downside concerns had eased.

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