Kabu Posts Minor Slump in Trading Volumes for November

Stocks trading was down by 10 percent with futures value returning to normal after a strong October.

Japanese retail broker Kabu released its trading volumes for November of 2018 this Tuesday. The exchange saw a decline in trading volumes that is fairly typical for the last couple of months of the year.

Before beginning an analysis of the report, it is worth noting that November and October had an equal number of trading days. As such, any discrepancies between the two months can’t be pinned on the fact that one had more trading time than the other.

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In October of this year, Kabu reported that a total of ¥23.28 trillion ($210 billion) worth of stocks were traded using its services. That figure shrunk quite significantly in November. Kabu’s report indicates that the firm saw approximately ¥21.29 trillion ($190 billion) worth of stocks traded via its services last month. This was equivalent to an almost 10 percent month-on-month decline.

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Unfortunately for Kabu, trading in the FX market also decreased in November. At the end of October, the securities broker reported that it had brokered ¥2.41 trillion worth ($21 billion) of FX trading. Tuesday’s report indicates that in November that number slipped to ¥2.31 trillion ($20 billion), an approximately 5 percent month-on-month decline.

Future Is Bright for Kabu

On the face of it, things in the futures market were bad. Monthly trading value dropped by almost 50 percent – from ¥5.08 trillion ($45 billion) to ¥3.14 trillion ($28 billion). But in reality, this was more a return to normality, with November’s figures being very much in line with the rest of this year and October’s results being anomalously high.

Though trading volumes may have declined slightly this November, the number of people using Kabu’s services increased. According to Tuesday’s trading report, Kabu now has 1,107,918 users – that was up by almost 3,000 on October when the broker reported that it had 1,105,111 users.

Tuesday’s volume release comes a month after Kabu revealed it had seen a minor downturn in its revenue for the second quarter of its current fiscal year.

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