KRX Sector Index Constituents Regularly Changed... Mainly IT, Semiconductor, and Healthcare Replaced

21 New Additions to IT Index Components 'Record High'...Net Increase of 13
Construction Index Components Decrease by 5

Source=Korea Exchange

[Asia Economy Reporter Minwoo Lee] The Korea Exchange is set to make significant changes to the components of its sector indices. Information technology, healthcare, and semiconductors are among the sectors primarily affected.

On the 31st, the Korea Exchange announced that through the regular revision of the KRX sector indices scheduled for the 11th of next month, the total number of constituent stocks will increase by 27, reaching 459 stocks in total.

The information technology index saw the largest increase in constituent stocks. Twenty-one stocks, including KG Inicis, NHN Korea Cyber Payment, and Doosan Solus, will be newly included. Meanwhile, eight stocks such as Hyundai AutoEver, Daeduck, WiSol, and Lotte Information & Communication will be removed. As a result, the total number of constituent stocks will rise from 39 to 52, a 33.3% increase (13 stocks).

The semiconductor index will also undergo considerable changes. Thirteen stocks, including FST, Mico, Eugene Tech, and Seoul Viosys, will be added, while four stocks?Power Logics, Mirae Company, Anapass, and Yas?will be excluded. The total number of constituent stocks will increase by 9 to 37.

Changes in the healthcare index are also notable. Nineteen stocks, including Dongwha Pharm, Aprogen Pharmaceuticals, CHA Biotech, Kolon Life Science, MedPacto, and Suzen Tech, will be added. Conversely, fourteen stocks such as Dong-A Socio Holdings, Hwanin Pharm, and JW Life Science will be removed from the index. Consequently, the total number of healthcare sector index constituents will increase from 82 to 87. Additionally, the number of constituent stocks will increase in other indices such as consumer staples (4 stocks), energy & chemicals (3 stocks), machinery & equipment (3 stocks), broadcasting & telecommunications (1 stock), utilities (1 stock), and steel (1 stock).

Some indices will see a reduction in constituent stocks. The construction index is a representative example. Eight stocks, including HDC, KCC, Hanil Cement, Asia Cement, Hanyang ENG, and Dong-A GeoTech, have been removed. Only three stocks?Dongbu Construction, Dongguk S&C, and KCC Glass?have been newly added. As a result, the total number of constituent stocks will decrease to 28. Additionally, the media, securities, and insurance indices will each see a net decrease of two constituent stocks.

Meanwhile, the Korea Exchange annually selects KRX sector indices from the KRX Benchmark Index (BMI) constituent stocks based on liquidity and market capitalization criteria. Stocks that fall within the top 90% in terms of average daily trading value (liquidity basis) over the past three months retroactive from the final trading day in July, and whose average daily market capitalization accounts for 95% of the total sector market capitalization, are selected as KRX sector index constituents. However, if the number of constituent stocks is fewer than 20, additional stocks meeting liquidity criteria are sequentially selected based on descending average daily market capitalization to fill up to 20 stocks.

This content was produced with the assistance of AI translation services.