KOSPI Plunges 8.95% to 6-Month Low on July 13 as Trading Volume Collapses

According to Korea Exchange, South Korea's KOSPI index plunged 8.95% to 6,806.93 on July 13, breaking through the 7,000-point mark amid a dramatic decline in market activity. The benchmark's weekly average trading volume collapsed to 37.26 trillion won in the week of July 6-10, down from 59.90 trillion won in early June, marking the lowest level since early May.

Retail investor participation in total KOSPI trading fell to 31.3% for the week ending July 10 from 37.3% in early June, while accumulated investor deposits dropped to 105.58 trillion won as of July 10, the lowest since February, with potential further decline given July 13's losses. The index's 12-month forward price-to-earnings ratio fell to 6.36x, nearing the 6.3x low recorded during the 2008 global financial crisis.