According to the Korea Exchange on the 29th, the average fluctuation rate of the Value-up index stocks is 2.97%. This result was calculated by comparing the closing prices on the 24th and 27th. The Value-up index was announced after the market closed on the 24th.
By market, the average profit rate of KOSDAQ stocks surpassed the Korea Composite Stock Price Index (KOSPI). The average profit rate of 33 KOSDAQ stocks was 4.11%, while that of 67 KOSPI stocks was 2.38%.
During the same period, compared to the 0.69% increase in the KOSPI index and the 0.93% increase in the KOSDAQ index, the Value-up index stocks were relatively robust.
Lee Kyung-min, a researcher at Daishin Securities, analyzed, “Large-cap stocks were generally expected to be included in the index, but there seems to have been a surprise effect for small and medium-sized stocks. The low liquidity of small and medium-sized stocks was also a factor in increasing the rate of return.”
The stock that increased the most was EcoPro H&N (KOSDAQ) with a 20.65% gain.
Following closely were Hyosung TNC (15.95%·KOSPI), Hanjin Kal (15.38%·KOSPI), Yoon Sung F&C (14.23%·KOSDAQ), F&F (12.52%·KOSPI), SK Hynix (12.42%·KOSPI), Pan Ocean (11.68%·KOSPI), SM Entertainment (10.24%·KOSDAQ), and others.
By sector, Materials (5.77%) saw the largest increase, followed by Industrial (4.44%), Information Technology (3.65%), Communication Services (2.98%), Consumer Discretionary (2.44%), Staples (1.83%), and Financials and Real Estate (1.44%). Healthcare (-0.05%) and Energy (-1.45%) declined.
The Information Technology sector, which includes major semiconductor companies like Samsung Electronics, SK Hynix, and Hanmi Semiconductor, was influenced more by the strong performance of Micron in the U.S. than by the index inclusion effect.
Meanwhile, companies like SM (10.24%) and JYP (5.05%) in the Communication sector, which had been experiencing reduced investments from the National Pension Service and foreign investors since the beginning of the year, emerged as new beneficiaries of the Value-up trend.
Financial stocks, which were considered undervalued and beneficiaries of the Value-up trend, experienced profit-taking as the perception that stock prices had already reflected the trend led to relative underperformance.
While KB Financial dropped from the index, companies in the Financials and Real Estate sector like Shinhan Financial Group (-0.35%) and Samsung Fire & Marine Insurance (-2.62%) decreased, while Meritz Financial Group (4.16%) and Hana Financial Group (2.04%) increased. Woori Financial Group (0.70%), Mirae Asset Securities (0.12%), Kiwoom Securities (0.44%), and DB Insurance (0.61%) also saw modest gains.
Some analysts believe that rather than a direct effect of the Value-up index inclusion, the overall warmth in the domestic stock market was due to Micron’s strong performance in the U.S. and the impact of China’s stimulus measures.
Kim Seok-hwan, a researcher at Mirae Asset Securities, analyzed, “Stocks rose not necessarily because of the Value-up index but because concerns about the semiconductor industry subsided with Micron’s strong performance, foreign capital flowed back in, and stock prices rose due to the impact of China’s stimulus measures.”