Widespread use of the Internet for stock trading has lured more individuals to the market.

It is likely that they will account for more than 30 percent of total stock trading in value on Japan's three major exchanges in 2004 for the first time since 1991, according to brokerages.

In the first 11 months of this year, individual investors captured a 31 percent share of all transactions on the Tokyo Stock Exchange, Osaka Securities Exchange and Nagoya Stock Exchange.

Individuals have been active participants in stock trading as brokerages have been encouraging them to open accounts for Internet-based trading.

The number of accounts opened at five leading online brokerages, including Matsui Securities Co., E*Trade Securities Co. and Rakuten Securities Inc., totaled some 1.5 million at the end of November, an increase of nearly 500,000 from the end of last year.

"As the stock market remained firm, not only middle-age people, but those in their 20s and 30s who engaged in stock trading for the first time, actively opened accounts," a Matsui Securities official said.

Although individuals have been net sellers since August, their active participation, along with nonresident investors whose transactions account for more than 50 percent of the total value of stock trading, have contributed to brisk trading this year, a major brokerage house official said.

The share of stock trading by individuals via securities houses began to decline in 1992 along with Japan's economic downturn. In 1998, when Japan was caught in financial unrest, the ratio fell to 13.5 percent of all transactions in value.

The ratio rose close to 30 percent in 1999 when brokerage commissions were liberalized, but fell below 20 percent again in 2001 due to a deterioration in economic activity.

Trading will close for the year Thursday.