Guide to Index
KOSPI Series_KOSPI Sub-indices for Market Capitalization
As a parameter to be used in analysis of the market and portfolio performance, the KRX-Stock Market Division produces KOSPI subindices by grouping the listed companies into large-cap, med-cap and small-cap by the size of their market capitalization.
The KOSPI sub-indices for capital size produced since 1983, are based in listed capital and do not accurately reflect the latest market change and inconsistent with the stock price index. Considering the fact that most of exchanges in the world are classifying the companies by their market capitalization, the KRX-Stock Market Division began to produce and publish the market capitalization subindices in 2003, by setting January 4, 2000 as base date of the index with a base index 1000.
Eligible Constituent Stocks
Stocks used for calculation are all stocks listed on the KRX-stock market with the exception of insolvent enterprises, businesses expected to be delisted and other stocks that are deemed unsuitable. Therefore, the stocks of the securities investment firms, administrative stocks, delisted, etc. are excluded while the initially listed stocks are temporarily excluded until the next regualr realignment date.
Classification Standards
Using the average daily market capitalization for the 3 months period retrospective to the regualr realignment date, the top 100 stocks in terms of market capitalization are classified as “Large-Cap”, 101 to 300 are classified as “Mid-Cap”, and the rest are classified as “Small-Cap”.
| Name of indices | Classification standards | Constituent stocks |
|---|---|---|
| KOSPI LargeCap | Ranking of market capitalization 1st ~ 100th | 100 stocks |
| KOSPI MidCap | Ranking of market capitalization 101st ~ 300th | 200 stocks |
| KOSPI SmallCap | Ranking of market capitalization below 300th | Flexible |
Regualr/Special Realignment of the Constituents
In order to improve the significance of the indices and ensure that they accurately reflect market conditions, the constituents are realigned twice a year, on the trading days after the days that are the last trading days of June contracts and December contracts of both the index futures and index options.
However, when a constituent stock is designated as administrative or delisted, such stock is removed from the constituents on that very day. Even if the cause for removal is annulled, the stock is not included in the constituents until the next regualr realignment date.
Publication
KOSPI sub-indices by market capitalization 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.
- Contents Manager :
- Management Strategy Division/Index Development/SOHN YESEUL(051-662-2353)
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