South Korean stock, bond markets remain stagnant in Q3

South Korea's stock and bond markets remained stagnant in the third quarter of 2013, data showed Monday, apparently due to the lack of fresh momentum in the market. The average daily trading volume on South Korea's main bourse came to 17.7 trillion won (U$16.5 billion) in the July-September period, marking the lowest level in nearly seven years, market data showed. The daily trading volume came to 25.6 trillion won over the first three months of 2013 and plunged to 18.9 trillion won in the second quarter. South Korea's bond market also saw its average daily trading volume reach 81.9 trillion won in the third quarter, marking the lowest level since 76.5 trillion won tallied in the first quarter of 2012, the data also showed. The bearish financial market conditions came as investors took a wait-and-see approach due to the slowing economy at home and abroad, market watchers said. The rising uncertainties over the tapering of the United States' economic stimulus moves also dealt a harsh blow to investors' sentiment, they added. Market watchers, however, said the double slump in the financial market comes as a rare occasion, as at least one of the two markets usually gathers ground depending on whether investors prefer safe assets or risky destinations. "It is unusual for the stock and bond markets to remain stagnant at the same time," said Lee Jong-woo, a researcher at I'M Investment & Securities Co. "As there is no significant growth momentum in the market for the time being, however, the trend is likely to continue down the road."