KOSPI Market Capitalization Hits Record High in the 2,600 Trillion Won Range
The total market capitalization of the domestic stock markets (KOSPI, KOSDAQ, KONEX) surpassed 3,000 trillion won for the first time ever on July 10.
According to the Korea Exchange on this day, the combined market capitalization of the domestic stock markets was tallied at 3,020.7694 trillion won. This is the first time that the total market capitalization has reached the 3,000 trillion won mark. By market, KOSPI accounted for 2,603.7392 trillion won, while KOSDAQ and KONEX recorded 413.8598 trillion won and 3.1704 trillion won, respectively.
This record was mainly due to the KOSPI market capitalization, which has risen for four consecutive trading days and set a new all-time high on this day. The KOSPI market capitalization, which stood at 1,963.3288 trillion won at the end of last year, rose to the 2,000 trillion won level at the beginning of this year. After fluctuating in the 2,500 trillion won range until the end of last month, the KOSPI market capitalization jumped to the 2,600 trillion won range in a single day.
The increase in the number of listed shares also contributed to the growth in total market capitalization. On this day, the number of shares listed on the domestic stock markets was 120.47642 billion, up from 119.35495 billion at the end of last year.
Above all, the main factor cited is that the KOSPI has shed its reputation as a "Boxpi" and the index has gained momentum, continuing its upward trend. The KOSPI index has been on a monthly uptrend for four consecutive months, from April through July.
The monthly return, which was 3.04% in April, soared to 5.51% in May and 13.86% in June. In July, the figure has moderated to 3.63%, but most analysts believe the performance is solid, considering profit-taking pressures following the recent surge and uncertainties related to U.S.-imposed tariffs.
The market's attention is now focused on the potential for further gains in the index. As the KOSPI index approaches the 3,200 mark, concerns about a correction due to the recent rapid rise have emerged. However, the securities industry remains optimistic, with a series of rosy forecasts being released.
On this day, IBK Investment & Securities raised its upper forecast for the KOSPI this year from 3,100 to 3,400, while Korea Investment & Securities revised its KOSPI band for the second half of the year from the previous 2,600?3,150 to 2,900?3,550.
Lee Sujeong, a researcher at Meritz Securities, explained, "In March 2023, the Tokyo Stock Exchange strongly urged listed companies to reform their management structures, including expanding shareholder returns, and this gained support from foreign investors, leading to record highs the following year. The additional growth momentum for the Korean stock market can also be found here." In addition, a number of value-up (corporate value enhancement) policies being promoted in the political sphere?such as mandatory cumulative voting, expanded separate election of audit committee members, mandatory cancellation of treasury shares, a public tender offer system for corporate acquisitions, and separate taxation of dividend income?are also cited as factors supporting the bullish outlook.
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