As the government has adopted a policy to activate the secondary KOSDAQ market and there are growing expectations of listed firms’ performance improvement, the KOSDAQ index broke the 800 mark during intra-day trading for the first time in ten years. The securities industry expected that the KOSDAQ, which has continued its sweeping upturn, will show a rising tendency in earnest from the second half of next year after going through the adjustment at the end of this year.
According to the Korea Exchange (KRX) on November 26, the KOSDAQ index recorded at 803.74 during intra-day trading on the 24th, surpassing the 800 mark for the first time in ten years since 809.29 on November 7, 2007.
However, the KOSDAQ closed at 792.74, down 4.06 points, or 0.51 percent, as investors tried to realize profits after surpassing the 800 mark. On the same day, institutional and individual investors net bought 69.3 billion won (US$63.87 million) and 3.8 billion won (US$3.5 million) worth of KOSDAQ stocks, respectively, while foreign investors net sold 64.8 billion won (US$59.72 million).
Research centers from securities firms forecasted that the KOSDAQ will continuously show a rising trend next year. However, it said the KOSDAQ can be adjusted for a short-term at the end of this year and the first half of next year.
Jong-woo, head of research at IBK Investment & Securities Co., said, “The current stock trend will go down at the middle of next month as a whole and the KOSDAQ will stay at the 700 mark in the first half of next year. The index will rise from the second half of next year and can reach the 800 to 900 mark.”
Kim Jae-joong, head of research at Daishin Securities Co., also said, “We expect that the KOSDAQ index will maintain at the 750 to 850 mark. The market will be adjusted at the end of this year and maintain at the 750 mark but it will increase again afterwards.”