KOSPI
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The Korea Composite Stock Price Index or KOSPI (코스피지수) is the index of all common stocks traded on the Stock Market Division—previously, Korea Stock Exchange—of the Korea Exchange. It's the representative stock market index of South Korea, like the Dow average in U.S.
KOSPI was introduced in 1983 with the base value of 100 as of January 4, 1980. It's calculated based on market capitalization. As of 2007, KOSPI's daily volume is hundreds of millions of shares or (trillions of won).
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[edit] History
KOSPI (한국종합주가지수 Hanguk jonghap juga jisu) was introduced in 1983, replacing Dow-style KCSPI (Korea Composite Stock Price Index).
For decades, KOSPI moves below 1,000, peaking above 1,000 in April 1989, November 1994, and January 2000.
On June 17, 1998, KOSPI recorded its largest one-day percentage gain of 8.50% (23.81 points), recovering from the bottom of the Asian financial crisis.
On September 12, 2001, KOSPI had its largest one-day percentage drop of 12.02% (64.97 points) just after 9/11.
On February 28, 2005, KOSPI closed at 1,011.36. It then plunged to 902.88 until April. But unlike previous bull traps, it kept moving upward breaking the long-standing 1,000 point resistance level.
In November 2005, the index's Korean name was officially changed to Koseupi jisu (코스피지수).
On July 24, 2007, KOSPI broke 2,000 level for the first time. On July 25 it closed at 2,004.22.
On August 16, 2007, the largest one-day point drop of 125.91 (6.93%) occurred while the Western subprime mortgage crisis worsened. Then on August 20, the index recovered 93.20 (5.69%), its largest one-day point gain, after the U.S. Federal Reserve lowered the discount rate.
[edit] Components
As of October 2007, KOSPI has over 700 components. Top 10 stocks by market capitalization are:
- Samsung Electronics (005930)
- POSCO (005490)
- Hyundai Heavy Industries (009540)
- Kookmin Bank (060000)
- Korea Electric Power (015760)
- Shinhan Financial Group (055550)
- SK Telecom (017670)
- Woori Finance Holdings (053000)
- LG.Philips LCD (034220)
- Hyundai Motor (005380)
[edit] Other indices
- KOSPI 200, KOSPI 100, and KOSPI 50
- LargeCap, MidCap, and SmallCap indices based on market capitalization
- KOGI corporate governance index
- KODI dividend index
- Industry indices like chemicals, electrical & electronic equipments, transport equipment, or banks.
- KRX 100 and other KRX indices which take into account both stock markets of Korea Exchange (KRX) — Stock Market Division and KOSDAQ Division
[edit] KOSPI 200
The KOSPI 200 index consists of 200 big companies of the Stock Market Division. The base value of 100 was set on January 3, 1990. It has over 70% market value of the KOSPI, and so moves along the KOSPI index. KOSPI 200 is important because it's listed on futures and option markets and is actively traded—one of the most actively traded index in the world.
Its all-time low is 31.96, reached on June 16, 1998 during the financial crisis. It closed above 200 for the first time on April 24, 2007.
[edit] KRX 100
KRX 100 is the index of 100 companies listed on Korea Exchange, including KOSDAQ's NHN and other big companies. It's meant to replace KOSPI 200 as the key futures index, but not very successful until now.
[edit] See also
[edit] External links
- Guide to KOSPI, KRX.
