Tokyo stocks remain trapped in a deepening slump, mirroring negative investor sentiment.

After hitting a year-to-date high of 14,529.41 on May 7, the benchmark 225-issue Nikkei average sank below the 11,000 level during thin trading on Wednesday. Daily average turnover has plunged below 600 billion yen this month, down roughly 25 percent from 800 billion yen over the period from March to May. This reflects a shift in preference away from information technology stocks.

The recent volatility in the Tokyo market has sent shares reeling along a broad front, driving up their volatility ratio, a yardstick for price swings over a given period of time. The volatility ratio now stands at 47 percent for the Nikkei average, up from 15 percent at the start of the year.

On the Topix, the ratio for all shares listed on the Tokyo Stock Exchange's first section is now at 38 percent, up from 12 percent.

In the first quarter of this year, Softbank topped the list of volume leaders traded by online investors through Matsui Securities Co., with its daily average volatility ratio remaining above 60 percent.

After staying above 100 percent each trading day between Jan. 12 and Feb. 21, the ratio for Softbank dropped below 60 percent from May through July. Softbank no longer tops the list of volume leaders in terms of both buy and sell orders.

Recently, online investors have opted for Kitano Construction, Tokyu Land and other issues expected to benefit from the government's urban redevelopment plan. The volatility ratios for those issues have topped 60 percent.

Prices of stocks traded through Matsui now average around 500 yen per share, or half the average of the TSE's first section, indicating that online investors are chasing mostly after low-priced issues and pricey issues allowed to be traded in lots of 100 shares, instead of 1,000 for ordinary shares.

Online investors are opting to pick up the most volatile issues obtainable at a low investment cost.

The TSE is planning to call for a reduction in minimum trading units and stock splits for listed shares as early as October in a move aimed at lowering the cost of stock purchases and enticing investors into the market.