The combined market capitalization of South Korea’s stock market topped 8,000 trillion won for the first time during intraday trading Thursday, as the KOSPI extended its rally after breaking through the 9,000-point mark. The index later pared its gains in the afternoon, however, failing to hold above 8,000 trillion won on a closing basis.
According to the Korea Exchange (KRX) on Friday, the combined market cap of the KOSPI and KOSDAQ briefly exceeded 8,000 trillion won during the previous session. It was the first time the Korean stock market’s total market cap had surpassed 8,000 trillion won, even on an intraday basis. The combined market cap later fell to 7,941.6724 trillion won at the close as index volatility widened.
By market, the KOSPI’s market capitalization was 7,398.8747 trillion won, while the KOSDAQ’s was 542.7977 trillion won. The KOSPI led the overall gain in market cap, while the KOSDAQ showed a relatively sluggish performance.
The Korean stock market’s market cap has been expanding rapidly this year. After surpassing 6,000 trillion won for the first time on April 27, it broke through 7,000 trillion won just eight trading days later on May 11. It then reached the 8,000 trillion won level intraday 26 trading days after that. The increase is attributed to a re-rating of share prices led by large-cap KOSPI stocks, which lifted the overall size of the market.
The Korean market’s standing in global markets is also rising. According to the World Federation of Exchanges (WFE), the Korea Exchange’s market capitalization stood at $4.9494847 trillion as of the end of May, ranking ninth among exchanges worldwide. Canada’s Toronto Stock Exchange (TMX), ranked eighth, had a market cap of $5.003353 trillion.
This month, however, the pace of gains in Korean stocks has far outpaced Canada, raising the likelihood of a change in rankings. The KOSPI’s return this month was 6.93 percent, far exceeding the 0.58 percent rise in Canada’s S&P TSX index. Taking this into account, analysts say the Korea Exchange may have overtaken Canada to enter the top eight in market cap by exchange on a current basis.
Even when grouped by country or region, the Korean stock market has joined the ranks of major economies. It is assessed as fifth, following the Americas (the United States and Canada), Greater China (China and Hong Kong), Japan, and Europe.
By the market cap tracking site CompaniesMarketCap.com, the combined market cap of Korean listed companies stands at $4.555 trillion, ranking fifth after the United States, China, Japan, and the United Kingdom. The United Kingdom’s market cap is $4.694 trillion, leaving a relatively small gap with Korea. The figures, however, are calculated based on major listed companies rather than all listed firms.
