KOSPI Hits Dream 2800... Market Cap Also Sets All-Time High in 'Record-Breaking Rally'

KOSDAQ Rises 20% in Two Months

[Asia Economy Reporter Geum Bo-ryeong] In 2020, the domestic stock market in South Korea set various records. The KOSPI index plummeted to the 1400 level in March, when the spread of the novel coronavirus (COVID-19) was at its peak, but recently surpassed 2800 for the first time ever, nearly doubling in about nine months. The KOSDAQ index is also on the verge of reaching the 1000 level.

According to the Korea Exchange on the 30th, the KOSPI rose to an intraday high of 2834.59 on the 28th. Although it experienced a slight correction afterward, it was trading above the 2820 level as of 11 a.m. on the last trading day of the year. The KOSPI started the year at 2175.17 on January 2, but due to the impact of COVID-19, it sharply declined in March, falling to 1457.64 on March 19. Afterward, the KOSPI began to recover, rising to the 1800 level in April, 1900 in May, and 2100 in June, and in November, it closed above 2600 for the first time in the history of the stock market. On the 23rd of last month, the KOSPI closed at 2602.59. The previous highest KOSPI closing was 2598.19, achieved on January 29, 2018.

After surpassing the 2600 level, the KOSPI continued to break records. From the 23rd of last month to the 7th of this month, it closed higher on 9 out of 11 trading days, reaching 2745.44. On the 24th, it opened the 2800 era by hitting 2806.86, raising expectations for the 3000 level.

The KOSDAQ is also approaching the 1000 level amid the year-end rally. On October 30, the KOSDAQ was at 792.65, but it rose to 957.41 the day before, marking a 20.79% increase in two months.

Along with the rise in the stock market, market capitalization also reached an all-time high. The KOSPI market capitalization, which was 1461 trillion won on January 2, broke the previous record by reaching 1787 trillion won on the 23rd of last month, and hit an all-time high of 1944 trillion won the day before.

In particular, Samsung Electronics, which holds the top spot in KOSPI market capitalization, recorded a closing price of 78,700 won on the 28th, setting a new high and reaching a market cap of 470 trillion won. Including the preferred shares of Samsung Electronics (Samsung Electronics 우) with a market cap of 60 trillion won on the same day, Samsung Electronics’ total market capitalization easily exceeded 500 trillion won.

This record is thanks to the net buying trend of individual investors, known as the so-called "Donghak Ant Movement." On the day before the ex-dividend date, individual investors net bought 2.197 trillion won in the KOSPI market, marking the second-highest daily net buying since 2.2205 trillion won on the 30th of last month. Although individual investors net sold a total of 2.135 trillion won between the 23rd and 28th, the last day to avoid major shareholder capital gains tax, they appeared to be buying again the day before.

Trading volume also set records in this "bull market." On the 28th, the KOSDAQ market’s trading volume was 16.9017 trillion won, and combined with the KOSPI market’s trading volume of 24.1978 trillion won, it exceeded 41 trillion won. Looking at the entire year, the KOSDAQ market’s trading volume surpassed 2600 trillion won, setting a new record since the market’s establishment in 1996.

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