It has been found that the KOSPI’s growth rate compared with its own annual low point is the lowest worldwide with the other global stock markets enjoying a rally. Experts are saying that this is attributed to the strong won and weak yen trends as of late.
According to industry sources, the Korea Composite Stock Price Index closed at 1,950.90 on February 8, 10.26% up from the most recent 52-week low of 1,769.31. The rate of increase is much lower than those of the other stock markets. For example, the percentage amounted to 38.19% for the Nikkei 225 Index and 34.30% for Italy’s FTSE MIB Index. Germany (27.00%), China (24.22%), France (23.47%), India (23.15%), Britain (19.67%), United States (18.32%) and Taiwan (14.68%) showed a relatively higher growth rate from their 52-week low, too.
This means that the KOSPI is failing to join the global stock market rally these days to suffer undervaluation, due in part to foreign exchange fluctuations and the withdrawal of capital from the Vanguard funds. “The global stock market has been in a rally driven by liquidity since September last year but the KOSPI has not benefitted from it at all,” said Samsung Securities analyst Kim Ki-bae, adding, “However, since its degree of fatigue is rather low, it will be able to hold out in the event of the global markets entering a stagnation phase down the road.”