KOSPI and KOSDAQ Combined Market Capitalization Reaches All-Time High

[Asia Economy Reporter Minji Lee] The market capitalization of the KOSPI and KOSDAQ markets reached an all-time high.

According to the Korea Exchange on the 11th, the market capitalization of the KOSPI and KOSDAQ markets recorded a total of 2,032 trillion won, with 1,703 trillion won and 328 trillion won respectively, achieving an all-time high. The previous record for combined market capitalization was 2,019 trillion won on January 29, 2018. The lowest point of the year was on March 19, when the KOSPI fell to the 1,450 level, with the market capitalization of the KOSPI and KOSDAQ markets recording 982 trillion won and 157 trillion won respectively, totaling 1,139 trillion won.

The increase in market capitalization is attributed to accelerated inflows of funds into risky assets as expectations for global economic recovery rose due to the resolution of uncertainty surrounding the U.S. presidential election and the visibility of vaccine development. Accordingly, the global stock market capitalization has been continuously setting new records, rising from $88 trillion on September 30 to $95 trillion as of the previous day.

In particular, the domestic stock market appears to have attracted large-scale foreign buying due to the depreciation of the dollar following Biden's election, which led to an appreciation of emerging market currencies. As of the previous day, the value of the Korean won reached 1,110 won per dollar, marking a two-year high and contributing to foreign capital inflows of 3.3 trillion won this month.

In the KOSPI market, the rise of untact (contactless) and bio sectors was prominent. Although the KOSPI was about 4.3% lower compared to its previous peak on January 29, 2018, the market capitalization of untact bio companies such as Naver, Kakao, Samsung Biologics, and Celltrion increased by approximately 0.6% (13 trillion won).

Compared to the previous peak, Samsung Electronics' market capitalization increased from 330.6212 trillion won to 365.9477 trillion won. Its weighting rose from 19.6% to 21.5%. SK Hynix expanded from 3.3% to 3.7%. Samsung Biologics increased from 1.7% to 3.0%, and LG Chem also rose from 1.9% to 2.9%.