The turnover ratio of Korean stocks decreased last year as the local equity market remained sluggish despite ample liquidity under low interest rates, the main bourse operator said Monday.
The turnover ratio of stocks listed on the main KOSPI market was 198.38 percent in 2014, down 37.76 percent from a year ago, the Korea Exchange (KRX) said. Stocks changed hands twice on average last year.
The corresponding ratio for shares on the tech-laden KOSDAQ market was tallied at 390.51 percent, 72.71 percent lower than a year ago, the KRX said.
A total of 59 KOSPI and 215 KOSDAQ stocks were traded over five times last year, while 381 KOSPI and 230 KOSDAQ stocks changed hands less than once, data showed.
Stocks of market heavyweights, normally more stable in price, turned volatile last year as shares affiliated with family-run conglomerates fluctuated on issues related to restructuring.
Among the top 100 listed companies by market value, 59 shares moved in a wider price range in 2014 compared to a year ago, according to data compiled by market researcher FnGuide.
Amore Pacific Co., South Korea's top cosmetics maker, showed a 155.1 percent gap between maximum and minimum prices last year, up from 44.5 percent from a year earlier. Amore G Co., which targets lower-end cosmetic brands, showed 182.7 percent difference between high-low prices, also up from 46.6 percent the previous year.
Shares affiliated with Samsung Group and Hyundai Motor Group, the nation's top two conglomerates, showed greater volatility.
Samsung Electronics Co., the nation's largest share by market value, showed a 35.7 percent gap between top and bottom prices last year, up from 29.5 percent from a year earlier.
Samsung SDS Co., Samsung's IT service unit listed in November, marked 62.1 percent of volatility, while Cheil Industries Inc., another Samsung affiliate that was floated in December, showed 51.3 percent.
Hyundai Motor Co. and two of its affiliates sank after the top automaker decided to use 10.55 trillion won ($9.73 billion) of cash to buy land in southern Seoul, leading to a sharp sell-off by foreign investors.
Hyundai Motor's volatility rose to 66.6 percent in 2014, jumping from 45.45 percent in 2013, while the corresponding figure for Hyundai Mobis, an auto parts maker, went up from 28.3 percent to 40.5 percent, data showed.
"The Korean stock market has remained in a boxed range for four years although low interest rates provided ample liquidity," Kang Hyun-ki, a researcher at I'M Investment & Securities Co., said.
"Under such circumstances, any momentum that could affect individual stocks, such as group restructuring issues, sharply drew funds into the equity market." (Yonhap)
