December Exchange Index Regular Changes, Expected Inclusion Stocks

[Asia Economy Reporter Song Hwajeong] With the regular changes to major indices such as KOSPI200 and KOSDAQ150 scheduled for December 10, interest in the stocks expected to be included is growing.

According to Korea Investment & Securities on the 3rd, this December's regular change will implement the KOSPI200 adjustment for the first time. This is the first biannual regular change following the methodology improvement announced last December. The period for applying the average daily market capitalization and trading volume for rebalancing is from May 1 to the last trading day of October. Researcher Song Seung-yeon of Korea Investment & Securities said, "As of September 28, with about a month remaining, this is the time when the outlines of the inclusion and exclusion lists become somewhat clear, so it is an opportunity to capture trading chances by buying stocks to be included and selling stocks to be excluded."

This regular change is expected to replace 5 stocks in KOSPI200 and 15 stocks in KOSDAQ150. Researcher Song forecasted, "In KOSPI200, the inclusion of Shinpung Pharmaceutical, which recorded a significant rise in the first half of this year, and Zinus, which was listed on October 30 last year, is highly likely," adding, "Passive funds of approximately 150 billion KRW and 49 billion KRW will flow in, respectively." In KOSDAQ150, it is expected that passive tracking funds ranging from at least 5.6 billion KRW to about 41 billion KRW will flow into 15 stocks including MedPacto. Researcher Song added, "The number of consumer goods stocks in KOSPI200 is expected to increase, and the number of IT sector stocks in KOSDAQ150 will slightly rise."

Researcher Song explained, "In past regular changes, foreigners and institutions showed different cumulative buying and selling directions for inclusion and exclusion stocks starting from the day of the event," adding, "Foreigners were active in event plays, whereas institutions tended to closely follow the index." Although this year there is some possibility that the direction may differ from before due to the large cumulative balance of spot sales by foreign investors, the expectation for event plays on individual stocks remains valid. Researcher Song said, "Rather than one-sided buying or selling, it is advisable to respond while observing the supply and demand trends of both inclusion and exclusion stocks."

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