"Should I try making money from stocks too?"... Daily trading value jumps from 33 trillion to 62 trillion won in a month

According to Financial News, the average daily trading value on the KOSPI market last month more than doubled from the previous month. The turnover ratio of customer deposits, an indicator used to gauge whether the market is overheating, also turned upward.

On the 5th, Daol Investment & Securities analyzed data from the Korea Financial Investment Association (KOFIA) and reported that the average daily trading value of domestic stocks last month, combining the Korea Exchange (KRX) and NextTrade, reached 62.3 trillion won. This represents an 89.1% increase from 33 trillion won in the previous month. Compared with the same month a year earlier, it surged 339.1%.

By market, the KOSPI accounted for 41 trillion won and KOSDAQ for 21.3 trillion won. These figures are up 116.9% and 52.1%, respectively, from 18.9 trillion won and 14 trillion won in the previous month.

The turnover ratio of customer deposits fell from 46.4% in November last year to 37.5% in December, a drop of 8.9 percentage points. However, it rebounded to 58.8% last month. The turnover ratio compares the amount of trading to the balance of customer deposits—funds investors leave in their brokerage accounts to buy stocks or proceeds from stock sales that have not yet been withdrawn. It is widely used as an indicator to diagnose whether the market is overheated or sluggish.

In contrast, the average daily trading value of overseas stocks showed little change, coming in at 1.78 trillion won in December last year and 1.79 trillion won last month.
Kim Ji-won, a researcher at Daol Investment & Securities, explained, "Trading demand briefly slowed at the end of last year, but additional policies to revitalize the stock market drew funds from all investor groups back into domestic equities, which pushed up trading value and lifted the turnover ratio of customer deposits."

Securities firms are seen as key beneficiaries of the strong stock market. Kim noted, "Expectations for higher fee income remain valid," adding, "Despite some volatility in December last year, trading value turned upward again in January this year, creating a favorable environment for brokerage commission income from client trading."

From last month through the 4th of this month, the KRX Securities Index jumped 50.98%, recording the highest gain among all KRX indexes. This increase even exceeds that of semiconductors, which have led the so-called bull market, at 43.61%.

Kim advised, "Although investors should take into account the unfavorable macroeconomic environment, including rising interest rates, I recommend focusing on high return-on-equity (ROE) stocks with strong earnings leverage to the stock market."

hsg@fnnews.com Reporter Han Seung-gon Reporter