The World Federation of Exchanges (WFE) announced on Nov. 24 that Korea Exchange (KRX) recorded a market capitalization of US$1,369.2 billion at the end of last month, ranking 15th out of its 69 member exchanges. Previously, KRX came in 13th at the end of 2017 and 14th at the end of 2018.
The South Korean stock market lost steam during the same period. In 2017, the KOSPI stock exchange reached new highs over and over and its market cap amounted to approximately 1,600 trillion won. Last year, however, U.S.-China trade disputes led to a 17.28 percent decline in the stock price index, the steepest fall in 10 years. The index dipped below 2,000 points in August this year and has moved sideways since then.
Likewise, the KOSDAQ index dropped to 550 points or so this year before recently rebounding to 630 points. For reference, the stock exchange closed at 631.44 at the end of 2016. In other words, the stock market has shown no growth for three years.
Under the circumstances, the market cap of KRX decreased by US$17.5 billion and the ratio of KRX’s market cap to that of the 69 exchanges fell from 1.85 percent to 1.65 percent for the first 10 months of this year. On the other hand, most of the 69 exchanges showed an increase in market cap. Especially, KRX is the only one in the top 20 that showed a negative market cap growth this year.