KSE in 400 Trillion Won Era

KOSPI (Korea Composite Stock Price Index) soared to its highest level in 23 months, and the market capitalization of listed companies surpassed 400 trillion won.

Samsung Electronics jumped to the 600,000 won level per share, nearing to 100 trillion won in market capitalization.

At KSE (Korea Stock Exchange), KOSPI closed at 909.93 yesterday, rising by 3.74 points (0.41 percent) from the day before, which was the highest figure in 23 months since April 24, 2002 (915.69).

The market capitalization reached 401.5820 trillion won, opening the first 400 trillion won era. This figure was reached in four years and seven months after the 300 trillion won mark was passed in August 25, 1999 with 305 trillion won.

KOSPI is much lower now than when it passed the 300 trillion won mark (963.00), but with large-capital stocks centered on Samsung Electronics rising, it reached the 400 trillion won level.

Samsung Electronics temporarily jumped to 607,000 won as foreign investors flowed in, but ended at 600,000 won (0.84 percent), renewing the highest price ever. Samsung Electronics’ market capitalization, including preference shares, was 97.5530 trillion won, nearing to the 100 trillion won mark.

Samsung Electronics now holds 24.3 percent (including preference shares) of the total market capitalization. This means that this one company’s market capitalization reaches a quarter of the entire market capitalization of listed companies (683 companies).

Foreign investors net purchased some 183,000 shares of Samsung Electronics yesterday. Accordingly, the number of shares foreign investors possess reached to 60.08 percent and renewed its highest figure (60.0 percent in December 6, 2001).

Stock experts said, “Surpassing the 400 trillion won mark in market capitalization resulted from foreign investors net purchasing close to 10 trillion won this year.”

Kang-Woon Lee kwoon90@donga.com