Following the international trends of producing a variety of special stock price indices representing special market characteristics of the constituent stocks, e.g., a group of special issues, industries, etc., to satisfy a wide range of requests made by investors, the KRX introduced KOSPI 100 in March 2, 2000 with a base index of 1000 set to January 4, 2000.
KOSPI 100 is composed of constituents that rank in the top 100 of KOSPI 200(the underlying index for index futures and options) in terms of market capitalization.
Selection of Constituent and Replacement Stocks
- KOSPI 100 constituents are the top 100 constituents in KOSPI 200 in terms of market capitalization, regardless of industry. The stocks, whose market capitalization is ranked next 20 places, i.e., from top 101 to top 120, are placed on the replacement list. The market capitalization used is based on the calculations made at the annual regualr realignment meeting of KOSPI 200 constituents.
Regualr and Special Realignment of the Constituents
- In common with the KOSPI 200, regualr realignment for KOSPI 100 takes place regularly once a year on the trading day after the last trading day for June contracts in the futures and options markets. In special occasions such as delisting or designation as administrative stock, constituents are substituted by replacement stocks. Furthermore, in order to ensure the stability of the index, strict standards are imposed on the admission and removal of constituents so that the number of stocks replaced is as small as possible. Accordingly, to be newly selected as a constituent, the market capitalization of a stock must be ranked within 80% of that of the constituents, and will be removed from existing constituent when ranking of market capitalization of such stock falls below 120% of the constituents. Other index calculations and maintenance methods of KOSPI 100 are the same as that of KOSPI 200.
- KOSPI 100 is updated on the KRX website every 10 seconds and is available in statistical KRX publication “KRX Review” on a daily, monthly, and yearly basis. In addition, past indices have been made available for investors retrospective to January 3, 1998.