KOSDAQ, which is excited by 'KRX300' ... Polarization of the market

KOSDAQ, which is excited by 'KRX300' ... Polarization of the market

KRX300 1-year-old market two times'

7 out of 10 market drugs / biotech

The KRX300, a new KOSPI / KOSDAQ index that will represent the Korean stock market, is showing signs of concern that KRX300 may further deepen the KOSPI market.

As the portion of pharmaceuticals and biotech companies in the market is steadily increasing, investment funds of ETFs that will follow the KRX300 index will eventually flow into 'Basdak' (bio + KOSDAQ) rather than 'KOSDAQ' "He said.

According to WiseFeun, a financial information company on the 1 day, the market capitalization of 66 KOSDA stocks (excluding 2 new listed ones out of the 68 added stocks) based on the closing price of KRW 125.1 trillion won, More than doubled. 

This is much higher than the KOSDAQ growth rate of 62% in the same period and the KOSPI growth rate of 45%, excluding 66. The proportion of KOSDAQ-added KOSDAQ stocks increased by 7 percentage points from 32% to 39%.

This trend is expected to worsen if the ETFs that follow the KRX300 index go public. According to ETF analysis, ETFs, which buy machinery mechanically according to the portion of market capitalization in the index, will need to focus on institutional investors such as pension funds led by the government to activate the KOSDAQ.

The problem is that the stocks of the stocks listed on the KOSDAQ are not diversified. 

Among the top 10 KOSDAQ-listed companies on the previous day, there are seven pharmaceutical and biotech companies. 

In particular, the share of market share of these seven stocks in total KOSDAQ surged from 9% a year ago to 24% the previous day.

"In order for the KOSDAQ to maintain its steady growth, pharmaceutical and bio stocks, which led the market, should prove fundamentals (fundamentals) in line with investor expectations," said Kim Yong-gu, a researcher at Hana Financial Investment Corporation. This impact can lead to market-wide adjustments. "

Hwang Se-woon, a research fellow at the Korea Institute of Capital Markets, said, "While the KRX300 is positive in terms of expanding investment by institutions and foreign investors in the KOSDAQ market, the gap between the stocks that are included in the index and those that are not included in the index may expand." 

"In order to minimize the side effects, it is necessary for the industry to be accompanied by government policies so that various industries can attract the attention of investors."

However, the KRX300 index only makes it difficult to predict the increase in purchases of top-rated stocks. 

Expectations for the government's KOSDAQ activation policy have already been reflected in the market, and there is no guarantee that future purchases of institutional and foreign investors will expand.

"The KRX300 index is about 10.3 times more attractive than the KOSPI 200 index, which is 9 times more attractive than the KOSPI200 index," said Kim Hyung-ryul, chief investment strategy manager at Kyobo Securities. Variables are important, but assessing corporate intrinsic value is a more important factor in predicting stock price volatility."