Korea: Daily volatility of stock prices at highest level since 1990

The daily volatility of domestic stock prices is at its highest level since 1990, exposing investors to a greater risk of losing money, a securities company said yesterday.

Shinyoung Securities Co. said that the daily volatility of the Korean Stock Price Index was over 3 percent for 95 days, or 51.35 percent, out of the total 815 days when the stock market was in session this year. The price volatility refers to the gap between the highest intra-day index and the daily low.

The percentage was 40.56 percent (101 days) last year, 36.99 percent (108 days) in 1998 and 18.15 percent (53 days), the brokerage house said. Between 1990 and 1996, the figure ranged from 0.34 percent to 7.9 percent.

The high daily volatility of the composite price index is expected to continue for the time being as long as domestic and foreign destabilizing factors keep plaguing the local bourse, it projected.

Updated: 10/07/2000

http://www.koreaherald.co.kr/news/2000/10/__05/20001007_0514.htm

-- Carl Jenkins (Somewherepress@aol.com), October 07, 2000

Answers

How does that comapre to U.S. stock market volatility, I wonder. Our volatility has been great, of late, mostly to the down side. Triple digits on both the NYSE and NASDAQ almost every day.

-- Uncle Fred (dogboy45@bigfoot.com), October 07, 2000.