(Yonhap)
South Korea’s small- and mid- stocks posted negative returns in May despite a nearly 1,000-point rally in the benchmark index.
According to data from the Korea Exchange on Sunday, the Kospi rose 13.55 percent in May as of Friday, while the small-cap index fell 6.1 percent.
The small-cap index comprises stocks ranked 301st or lower by market capitalization on the main board. It includes 533 companies, accounting for more than 60 percent of Kospi-listed firms, excluding preferred shares and administrative stocks.
The mid-cap index also fell 3.96 percent over the same period. In contrast, the large-cap index, made up of the top 100 stocks by market capitalization, surged 15.69 percent.
In April, the broader rally had lifted all segments, with the small-cap index rising 14.38 percent and the mid-cap index gaining 22.58 percent, supported by easing geopolitical uncertainty. However, gains have since become increasingly concentrated in large-cap stocks, widening the performance gap.
Market participants say the rally has turned increasingly top-heavy. The combined market capitalization of Samsung Electronics Co. and SK hynix Inc. has risen to 48 percent of the Kospi, while the two companies account for 72 percent of expected 12-month net profits.
“The concentration phenomenon is occurring in line with the fact that earnings forecasts for Samsung Electronics and SK hynix now account for the majority of total Kospi net profits,” said Lee Jae-man, an analyst at Hana Securities Co.
댓글
0