Domestic investors' trading hours have expanded from 3:30 PM to 8 PM, thanks to the launch of the after-hours market by the Korea Exchange (KRX). This new trading period allows individuals to buy and sell domestic stocks using their smartphones after work. Notably, individual investors accounted for over 90% of the trading volume, indicating a strong demand for night trading among workers.
According to the KRX, the first day of trading in the after-hours market on September 14 saw a total trading volume of 1.81 trillion won, with 72.24 million shares exchanged. Of this, approximately 1.33 trillion won was traded on the KOSPI and about 492.5 billion won on the KOSDAQ.
Individual investors made up 93% of the trading volume on the first day, while foreign investors contributed 3.9% and institutional investors only 2.1%. Additionally, 73% of orders were placed through mobile trading systems (MTS).
Demand for trading after work hours was particularly evident, with the peak trading time occurring between 7 PM and 8 PM, accounting for 30.7% of total transactions. This suggests that investors who found it difficult to respond to the stock market during working hours continued their trading activities after the market closed.
Evening Trading Demand Grows Among Individual Investors
Individual investors' preference for large-cap stocks persisted in the after-hours market. On the first day, trading in Samsung Electronics and SK Hynix accounted for 727.9 billion won, or about 55% of the total trading volume in the KOSPI after-hours market. This indicates a concentrated demand for semiconductor stocks even after regular trading hours.
With the extended trading hours, investors can now respond to corporate disclosures and significant domestic and international issues that arise after the market closes. This change has also improved accessibility for workers who previously found it challenging to trade during the day.
However, it remains to be seen whether the initial high interest will lead to sustained trading activity. From September 14 to 18, the average daily trading volume in the KRX after-hours market was 1.15 trillion won, which is only about 4.5% of the average daily trading volume during regular hours. Compared to the first day's volume of 1.81 trillion won, the trading scale has somewhat decreased.
Another point of concern is the concentration of trading among individual investors. With limited participation from foreign and institutional investors, smaller stocks with lower trading volumes may experience significant price fluctuations due to relatively few orders. In fact, some smaller stocks triggered volatility control measures shortly after the market opened.
Extended Trading Hours Bring New Considerations for Investors
The expansion of trading hours has also increased the number of prices investors encounter. Prices established in the after-hours market may differ from the closing prices of the regular market, necessitating that investors distinguish between the prices they see on portals or securities information services and the regular market closing prices.
Additionally, movements in overseas markets and corporate news after market hours can be quickly reflected in domestic stock prices. Conversely, stocks with insufficient trading volume may experience greater price volatility than during regular hours, prompting caution among investors.
A securities industry official stated, "The expansion of trading hours is significant as it enhances accessibility for investors who found it difficult to trade during the day. However, it is essential to monitor trading volumes and price volatility, as liquidity can differ from regular trading hours during the night."
Domestic investors' stock trading, which previously ended at 3:30 PM, now continues into the evening. Based on the first week's performance, individual investors are at the center of this new trading culture. It remains to be seen whether 'night trading' will establish itself as a new norm in the domestic stock market.
* This article has been translated by AI.
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