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KONEX Liquidity Crisis: Trading Value Plummets, Stocks Idle
23 Dec
Summary
- Average daily trading value on KONEX fell to 1.245 billion won this month.
- 23 KONEX stocks have experienced zero trading activity recently.
- A stock surged 279% with zero trading volume, leading to trading halts.
The KONEX market is experiencing a significant liquidity crunch, with average daily trading value dropping to 1.245 billion Korean won this month, a stark contrast to previous years. This decline is exacerbated by a growing number of stocks with virtually no trading activity, including 23 that have seen zero transactions.
This lack of liquidity is creating market distortions. For instance, one stock experienced a 279% price surge despite having no recorded trading volume since its listing. This phenomenon, driven by an imbalance of buy bids without corresponding sell asks, resulted in the stock being designated an investment warning and led to a one-day trading suspension.
The overall trend shows a continuous decrease in KONEX's average daily trading value since 2021. The Korea Exchange is observing an increasing number of stocks with extremely low daily trading volumes, raising concerns about the market's health and stability.
