Stock Turnover Surges Amid Market Volatility; Heungkuk Oil Tops List

Stock turnover in South Korea's equity market surged sharply this month as investors sought short-term gains amid wild price swings triggered by Middle East tensions.

According to the Korea Exchange on the 9th, the average daily turnover ratio for KOSPI-listed shares reached 2.38% in the first five trading days of this month, up approximately 43% from last month's 1.66%. The turnover ratio, calculated by dividing trading volume by the number of listed shares, indicates how frequently stocks change hands among investors.

The domestic stock market has experienced sharp fluctuations following the outbreak of conflict between the U.S.-Israel alliance and Iran. The heightened volatility drove increased trading activity by investors seeking quick profits. Analysts also suggest that investors who missed the early-year rally seized the market downturn as a buying opportunity.

Oil and natural gas-related stocks dominated the top of the turnover rankings. Heungkuk Oil (024060) led with a turnover ratio of 471%, followed by Korea ANKOR Oil (152550) at 345%. Other oil-related stocks including Korea Petroleum (004090) at 206% and Kukdong Oil & Chemicals (014530) at 171% also ranked high. Natural gas-related stocks such as GSE (053050) at 241% and Daesung Energy (117580) at 120% also made the list.

Shipping stocks saw turnover spike after Iran threatened to blockade the Strait of Hormuz, a critical maritime chokepoint, following U.S.-Israeli airstrikes. Heung-A Shipping (003280) recorded 194% turnover while STX GreenLogis (465770) reached 178%.

Leveraged and inverse exchange-traded funds also saw trading volumes surge. The average daily trading volume of the KODEX Leverage ETF, which offers double the returns of KOSPI 200 index gains, rose 66% to 38.53 million shares from 23.22 million shares last month. Trading volume for KODEX 200 Futures Inverse 2X, which doubles returns when KOSPI falls, jumped 175% month-over-month.