Kosdaq Outperforms KOSPI in Growth Rate for 3 Consecutive Months
by Lee Minwoo
Published 05 Sep.2021 11:46(KST)
KOSDAQ Surges Led by Individual Investors
Market Cap of Top 1-6 Companies Increases by Over 10 Trillion Won
[Asia Economy Reporter Minwoo Lee] The KOSDAQ index's rate of increase has outpaced the KOSPI's for three consecutive months.
According to the Korea Exchange on the 5th, the KOSDAQ index rose by 0.69% last month. During the same period, the KOSPI fell by 0.09%, meaning KOSDAQ outperformed KOSPI. This trend of the KOSDAQ index's growth rate surpassing that of the KOSPI has continued since June. Specifically, KOSDAQ rose by 4.9% and 0.11% in June and July, respectively. In the same period, KOSPI increased by 2.89% and then dropped by 2.86%. The KOSDAQ index outperforming the KOSPI for three consecutive months is the first occurrence since the four months from February to May last year.
Last month's upward momentum was particularly steep. Starting at 1031.14, it fell by 6.13% to 967.90 on the 20th of last month, exceeding the KOSPI's decline of 4.42% during the same period. However, it then reversed to an upward trend, surpassing the KOSPI's rate of increase. The KOSDAQ index rose for 10 consecutive trading days from the 23rd of last month to the 3rd of this month. This is the longest consecutive rise since July 27 to August 10 last year (11 consecutive trading days).
This upward trend is interpreted as being led by individual investors. Over the three months from June to August, individuals net purchased 3.1447 trillion KRW in the KOSDAQ market. During this period, foreigners net purchased 314.3 billion KRW, while institutions net sold 2.0342 trillion KRW.
The growth of top market capitalization stocks also drove the index. As of the end of May, Ecopro BM ranked 5th in the KOSDAQ market with a market cap of 3.8512 trillion KRW, but by the end of last month, its market cap nearly doubled to 7.0229 trillion KRW, jumping to 2nd place. During the same period, Pearl Abyss's market cap soared from 4.013 trillion KRW to 6.0246 trillion KRW, and Kakao Games' market cap surged from 3.902 trillion KRW to 6.0635 trillion KRW. The combined market cap of the top 1 to 6 companies increased by 29.17%, from 39.2597 trillion KRW to 50.7133 trillion KRW. This growth far exceeds the index's 5.76% rise during the period.
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