Profits Up

On April 14 the KOSPI gained 12.80 points to close at 2,111.72, surpassing 2,100 points in 44 months.
On April 14 the KOSPI gained 12.80 points to close at 2,111.72, surpassing 2,100 points in 44 months.

 

Approximately 85 percent of those companies listed on the Korean stock market posted an increase in stock prices this year, with the KOSPI and KOSDAQ showing bullish moves. 

According to the Korea Exchange, 750 out of 884 companies (85 percent) recorded a gain in KOSPI between the end of last year and April 13, 2015, while 125 and 10 (14.4 percent and 1.13 percent) recorded a decline or drifted sideways, respectively. In the KOSDAQ, 922 out of 1,059 (87.06 percent) posted a rise, in contrast to 131 of the others (12.37 percent). 

By industry segment, the chemical, securities, construction, and pharmaceuticals sectors showed a noticeable upturn. Specifically, chemicals gained 34.15 percent, while construction and pharmaceuticals showed a rate of increase of 37.91 percent and 40.35 percent each. 

The favorable stock market conditions are helping to improve the financial soundness of the companies, too. The Korea Exchange recently explained that the average debt ratio of the 612 KOSPI-listed companies that settled accounts in December last year decreased by 2.32 percentage points from a year ago to 126.31 percent. 

Nevertheless, some stock market experts are predicting that the companies are likely to show different stock price movements from May or June because the recent stock market rally is based on liquidity supply above anything else.

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