Guide to Index
KRX Series_KRX 100
As an indicator used to show an overall price level of stock market or the fluctuation of stock prices, a stock price index is used as an important measure of national economic status Depending on the developmental stage of financial industry, the stock price indices are utilzed in a variety of ways, including as a benchmark for measuring the portfolio performance,underlying index for the index derivative products and products linked to stock price indices.
Korean securities market began to calculate and make public the stock price index(Adjusted Stock Price Average Index)in 1964, and then introduced the Korea Composite Stock Price Index(KOSPI) that is based on the market capitalization in 1983, In June 1996, KOSPI 200 was introduced to prepare for the Launching of the derivatives market, i.e KOSPI200 futures and options.
KOSDAQ was introduced as the market indicator for the Kosdaq Market that was established to facilitate the capital raising by the venture industries in 1997 and KOSDAQ50, which is the underlying index for KOSDAQ50 futures and options, introduced in November 2002.
The Korea Exchange developed KRX 100 to reflect the rationale for the consolidation of the markets, i.e, choosing its constituents from both the Stock Market and Kosdaq Market, and introduced in June 2005.
The constituents of KRX 100 are the blue chip stocks representing the KRX market that are chosen on the basis of a variety of financial criteria such an the market value (market capitalization)and market liquidity (trading value) as well as the profitability, stability and soundness.
To ensure that KRX100 accurately represents the market and facilitates the convenience in use, the free-float weighted and capitalization limit methods are adopted
Summary / Basic Facts
- Name : KRX 100 (Korea Exchange 100 Index)
- Calculation Method : Market capitalization weighted on number of free-floats
- Base date and value : January 2, 2001=; 1000p
- Number of constituents : 100 stocks
- Regular realignment of constituent stocks : Annually (* The day after the last transaction day of June Settlement in Futures and Options Market)
- Criteria for selection of constituents
- Market value : Average daily market capitalization (three months retroactive from two months before the regular realignment - month)
- Market Liquidity : Daily trading value (one year retroactive from two months before the regular realignment month)
- Financial criteria
- Return on Equity (ROE): Latest three fiscal years.
- Debt ratio: Latest fiscal year.
- Retention ratio: Latest fiscal year.
- Free-float rate
- Capitalization limit : 15% (* Capitalization limit is set to exclude excessive influence of a specific constituent in a stock index.)
- Industry classification : 26 industry groups. (* Although based on the Korea Standard Industry Classifications, consideration is given to the characteristics of Kosdaq Market that is specially geared to the venture industries.)
- Contents Manager :
- Management Strategy Division/Index Development/Yoon Bo Sung(051-662-2356)
- Management Strategy Division/Index Development/SONG EUN KYOUNG(051-662-2353)
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