KOSPI Closes Down 9.6% Compared to Year-End... Market Cap Evaporates by 163 Trillion Won

This year, the domestic stock market showed a 'high in the beginning, low in the end' trend, with the KOSPI falling 9.6% compared to the end of the previous year, failing to maintain the 2400 level. Market capitalization evaporated by 163 trillion won. Compared to major global stock markets, it was found to have performed almost at the bottom level in the second half of the year.

On the last trading day of 2024, the KOSPI closed at 2,399.49 points, down 5.28 points, while the KOSDAQ ended the day at 678.19 points, up 12.22 points. Employees are walking below the price ticker board at the entrance of the Korea Exchange Seoul Office in Yeouido, Seoul. Photo by Heo Young-han

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According to the Korea Exchange on the 30th, the KOSPI closed at 2,399 points, down 9.6% from the end of the previous year. It had turned upward last year with an 18.7% increase but returned to a downward trend this year.

An exchange official explained, "The KOSPI showed an upward trend in the first half of the year due to expectations for the value-up program and the influx of foreign buying, reaching a yearly high of 2,891 points (July 11). However, since August, concerns about economic recession, Trump trade issues, and political uncertainties expanded volatility, leading to a downward trend."

The temperature difference between the first and second halves was also clear compared to major countries. The KOSPI's fluctuation rate in the first half was 5.4%, ranking 12th among 21 countries (G20 + Taiwan), but in the second half, the decline widened, showing relative weakness compared to major countries. In the second half, it fell 14%, dropping to 20th place.

By industry, the value-up program expectations led to strength in transportation equipment & parts, finance, and telecommunications sectors. Transportation equipment & parts rose 20.2%, finance 18.4%, and telecommunications 14.9% this year. On the other hand, due to China's economic slowdown and concerns over the semiconductor industry, chemical, textile & apparel, and electrical & electronics sectors showed weakness. The chemical sector fell 34.7%, textile & apparel 27.3%, and electrical & electronics 22.8%, respectively.

The KOSPI market capitalization at the end of this year was 1,963 trillion won, a decrease of 163 trillion won compared to the end of the previous year. In particular, the market cap of the electrical & electronics sector significantly decreased from 878 trillion won at the end of last year to 683 trillion won at the end of this year, a 22.2% decline.

Average daily trading value increased by 11.9% compared to the previous year, but trading volume decreased by 9.5%. An exchange official explained, "As the trading volume of large-cap stocks with a high proportion of high-priced stocks increased, the trading value rose, but the trading volume of small-cap stocks sharply decreased, resulting in an overall decline in total trading volume."

Looking at trading by investor type, foreigners net purchased 24.1 trillion won from January to July this year but switched to net selling in August and sold a total of 22.8 trillion won by the end of the year. Institutions maintained buying momentum centered on pension funds after the second half of the year.

Regarding new listings on the KOSPI market, the number of companies increased from 10 last year to 11 (including 3 transferred listings), and the public offering amount rose by 600 billion won from 1.3 trillion won to 1.9 trillion won.

The KOSDAQ closed at 678 points, down 21.7% compared to the end of the previous year. Market capitalization was 340 trillion won, down 92 trillion won from the end of the previous year. Average daily trading value and volume decreased by 16.3% and 13.5%, respectively, compared to the previous year. Foreigners and individuals net purchased 1.5 trillion won and 6.4 trillion won, respectively, in the KOSDAQ market this year, while institutions net sold 4.4 trillion won. New listings on the KOSDAQ market numbered 128 companies, slightly down from 132 last year, and the public offering amount also decreased to 2.4 trillion won from 2.8 trillion won last year.

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