As global markets extend trading hours, South Korea tests the case in Asia
Analysts say it is too early to tell whether the new evening session is generating genuinely new liquidity
[SEOUL] South Korea’s latest move to extend stock trading hours, in line with global trends, has drawn sizeable activity in its first weeks. But early data leaves open whether the longer trading day is bringing new liquidity into the market or simply shifting trades out of regular hours.
Analysts told The Business Times that it is too early to tell whether the new evening session is generating genuinely new liquidity, with early activity heavily retail-driven and several more weeks of data needed to assess its impact.
The Korea Exchange (KRX) launched a continuous after-market session starting Sep 14, running from 4 pm to 8 pm Korea Standard Time. The move gives local investors four additional hours of trading a day, extending the KRX trading day from six-and-a-half hours to 10-and-a-half hours.
