KOSPI Surpasses 3300 Mark... 7th Highest Growth Rate Among G20

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] The KOSPI index reached the 3,300 level for the first time in history, ranking seventh among the Group of Twenty (G20) countries in terms of returns this year.

According to the financial investment industry on the 27th, the KOSPI rose approximately 14.9% from 2,873.47 at the beginning of the year to 3,302.84. This was the seventh highest among 19 major stock indices of the G20 countries (excluding South Africa). Although it lagged behind Argentina (27.15%), Saudi Arabia (26.78%), Russia (20.51%), France (19.30%), Canada (16.04%), and the European Union (EU, 15.99%), it outperformed the three major U.S. Standard & Poor's (S&P) 500 index (13.97%), Dow Jones Industrial Average (12.51%), and Nasdaq index (11.42%). The KOSPI’s returns were also higher than those of the Shanghai Composite Index (3.87%), Shenzhen Composite Index (4.84%), and Hang Seng Index (7.55%), which are the second most invested markets by domestic investors after the U.S.

The KOSPI, which closed at 2,873.47 last year, opened the historic "3,000 era" at the start of the new year. Recently, it surpassed the 3,300 level for the first time ever. The KOSPI has been on an upward trend for eight consecutive months since November last year, breaking its all-time high 14 times during this period.

As the index rose sharply, its market capitalization also expanded significantly. At the end of last year, the KOSPI’s market capitalization was 1,980 trillion KRW, but it exceeded 2,000 trillion KRW for the first time and reached 2,312 trillion KRW as of the 25th, growing approximately 16.7% (332 trillion KRW).

The rise in the KOSPI market was driven by individual investors. Individuals net purchased stocks worth 53.4 trillion KRW in the first half of the year, supporting the index. This amount is 6 trillion KRW more than the net purchase amount of 47.4 trillion KRW for the entire last year. During this period, foreigners and institutions sold stocks worth 17.4 trillion KRW and 34.5 trillion KRW, respectively.

The KOSDAQ index rose 4.51% (43.71 points) in the first half of the year. On April 12, it closed at 1,000.65, regaining the 1,000 level for the first time in 20 years since the "dot-com bubble." Individual investors were also the main buyers in the KOSDAQ market. Individuals purchased stocks worth 8.149 trillion KRW in the first half, while institutions and foreigners sold stocks worth 3.6104 trillion KRW and 2.1027 trillion KRW, respectively.