Korea Exchange announces major features of this year’s stock market… “Fast recovery compared to major countries”

On the 30th, the exchange announced the main characteristics and performance of the domestic stock market in 2020.

The main contents are ▲Recording a record high due to rapid recovery compared to major countries ▲Recording the largest transaction value in history ▲Active participation in the market for individual investors ▲Strengthening the increase in the stock market for stocks in the K-New Deal Index ▲Frenzy for public offerings for companies in the future growth industry.

After recording the lowest point on March 19 due to the spread of Corona 19, the KOSPI recovered the level at the end of last year, the fastest among the G20 countries. The previous high (2598p, January 29, 2018) was renewed in 2 years and 6 months, and then the high was renewed every day and ended at 2873p.

This year, the average daily trading value of KOSPI reached a record high of about 11.09 trillion won. Among the G20 countries, the rate of increase in transaction value ranked third (115.2%) after Turkey (168.2%) and Saudi Arabia (145.1%). The average daily transaction value of KOSDAQ was estimated at 10 trillion won (152.7%).

The average daily transaction value of individuals increased by KRW 5.700 trillion and KRW 5.900 trillion, respectively, compared to the previous year, and the increase rate of the transaction weighting was higher than the KOSDAQ (3.5%p).

After Corona 19, individuals (aka Donghak ants) showed a steady buying trend in the process of rising stock prices after the low, showing a different behavior from the past crisis. Investment behavior has changed from short-term volatility pursuits to untact and other industry paradigm change leaders.

The stock trading activity account was opened with 6.12 million accounts (20.7%) compared to the beginning of the year (29.36 million accounts). As of the end of December, the account exceeded 35.48 million.

The exchange selected the BBIG (battery, bio, internet, game) industry, which is in the spotlight as a future growth industry as part of the Korean version of the New Deal Comprehensive Plan, and announced the K-New Deal Index in early September.

BBIG constituents, which are the core drivers of the K-New Deal policy, have led the stock market to rise after Corona 19 due to the influence of the’Untact fever’. Compared to the beginning of the year, the yield of the five KRX BBIG K-New Deal Indexes is over +50%. It is an evaluation that it showed superior performance compared to the KOSPI (32.1%).

The public offering stock subscription fever and share price increase also recorded the highest level. This year, future growth industries such as SK Biopharm, Big Hit, and Kakao Games led the subscription fever. It ranked 1st to 3rd in IPO margins, and the competition rate exceeded 1000:1 (Kakao Games, Myungshin Industries, Kyochon F&B, etc.).

The rate of increase in the stock price relative to the offering price of newly listed stocks is the highest in the past decade (68.5%). The number of stocks with a stock price increase of more than 100% was 19, of which two recorded more than 500%.

Since the introduction of the technology special listing system in 2005, the number of technology special companies listed has steadily increased, exceeding the number of technology special listed companies in 15 years. In particular, there is a trend of expanding to various industries such as AI, IT solutions, and robots, which are non-bio fields subject to listing for special technology.