The KOSPI has reclaimed the 8,000 level, but the number of stocks in the "trillion-won club" — companies with a market capitalization of at least 1 trillion won — has declined.
According to the Korea Exchange on Thursday, the trillion-won club counted 314 stocks as of Nov. 3. Of these, 235 were listed on the securities market (KOSPI), 78 on the KOSDAQ, and one on the KONEX. The KOSPI closed at 8,088.34 that day, marking a successful rebound.
The trillion-won club had expanded to 405 stocks on April 29 this year, surpassing 400 for the first time. At that time, the KOSPI stood at 6,690.90 on a closing basis. Although the KOSPI index was lower than it is now, the number of listed companies exceeding 1 trillion won in market capitalization was greater.
Even on Oct. 22, when the KOSPI recorded a closing high of 9,114.55, the number of securities-market stocks in the trillion-won club stood at 233, down from 267 on April 29. Although the index rose more than 2,400 points from the end of April, the rally centered on large semiconductor stocks intensified, and the number of securities-market stocks with a market capitalization of at least 1 trillion won actually fell by 34.
The fact that the number of trillion-won club stocks declined even as the index rose is interpreted to mean that only a limited number of companies saw their share prices climb along with the index. The decline was pronounced in the KOSDAQ market. The number of KOSDAQ stocks in the trillion-won club was 137 as of April 29, but fell to 78 as of Nov. 3, a 43% decrease over two months. The share of KOSDAQ stocks in the trillion-won club came to just 24.84%, falling to its lowest level since 24.44% on Dec. 1 last year. This was largely due to the KOSDAQ index giving back all of its gains this year and returning to last year's level.
The change in the "10 trillion-won club," comprising stocks with a market capitalization of at least 10 trillion won, was minimal. On April 29, there were a total of 79 stocks with a market capitalization of at least 10 trillion won in the domestic market. As of Nov. 3, the total was 71, down 10.1%. Compared with the trillion-won club's 22.5% decline in just over two months, weakness was more pronounced in the mid-cap and smaller segments than among large caps.
This is interpreted as reflecting the concentration of the domestic market's gains in a few large-cap stocks. Large semiconductor stocks such as Samsung Electronics and SK hynix led the KOSPI's rise, lifting the index, but the base of companies with a market capitalization of at least 1 trillion won narrowed. Analysts also point to the impact of single-stock leveraged and inverse exchange-traded funds (ETFs) for Samsung Electronics and SK hynix, launched at the end of May this year, as having intensified the "concentration" phenomenon.
