As the Kospi rally continues, a clear divide is emerging among stocks with rapid turnover. While large-cap semiconductor stocks lead the index higher, short-term trading money is rapidly spreading to cable, construction and brokerage shares.
According to a Seoul Economic Daily analysis on Nov. 11 of the top 50 stocks by turnover ratio on the Korea Exchange's Kospi market from the start of this month through the 8th, power and cable stocks dominated the rankings. Daewon Cable 1P (006345) saw its daily turnover ratio surge to 220.92%, with trading volume exceeding twice the number of listed shares. Daewon Cable (006340) posted a peak turnover ratio of 52.45%, with trading value topping 2 trillion won over four sessions. Sundo Electric (007610) also saw its turnover ratio climb to 108.66%. Taihan Cable & Solution (001440) recorded a peak turnover ratio of 16.01%, but its trading value reached 5.443 trillion won — the largest among cable stocks.
Short-term money also flowed into construction and building materials stocks. Taeyoung E&C 1P (009415) saw its turnover ratio jump to 236.65%, the highest this month. Hyundai Livart (079430) rose to 22.12%, Keumkang Industrial (014280) to 16.15%, and Jinhung Enterprise (002780) to 12.95%. Daewoo E&C (047040) had a relatively lower peak turnover ratio of 6.59%, but total trading value reached 2.3718 trillion won. Brokerage stocks also climbed alongside rising market trading volumes, with SK Securities (001510) turnover hitting 47.24%, Yuanta Securities Korea (003470) at 16.54%, and Hanwha Investment & Securities (003530) at 17.74%.
Market analysts say attention should focus on the pace of trading in individual stocks rather than the index's rise itself. A high turnover ratio can signal increased liquidity but also indicates concentrated short-term speculative trading. Preferred shares in particular have limited free float, so the same trading volume can produce sharp jumps in turnover ratio and heightened price volatility.
According to the Financial Supervisory Service, Kospi's average daily turnover ratio in April was 1.48% (Kosdaq 2.56%), far exceeding the U.S. S&P 500 (0.22%) and Japan's Nikkei (0.37%). The exchange-traded fund (ETF) turnover ratio stood at 21.58%, the highest on record. The ratio of margin loans to market capitalization was 0.58%, the lowest in five years, but the margin loan balance reached 35.7 trillion won, up 8.4 trillion won from the end of last year. Hwang Sun-oh, deputy governor of the FSS, said, "Rather than investing focused on short-term capital gains, it is important to establish a long-term investment culture based on corporate value."
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