Business · Markets · 1 day ago
KOSDAQ Outperforms KOSPI, but Return to 1,000 Looks Uncertain
South Korea’s KOSDAQ, a market with many smaller companies, has recently done better than the larger-company KOSPI.
In October, KOSDAQ rose 4.24% while KOSPI fell 3.1%.
KOSDAQ had climbed back above 900 in early October after falling from 1,000 in June to the 600s in late July, but it later slipped below 900 again.
Semiconductor materials, parts and equipment companies led much of the recent rise, and trading in KOSDAQ shares increased.
Analysts say the gains do not reflect a broad improvement in company profits or investor confidence, so a return to 1,000 may be difficult.
High interest rates are also a burden for smaller companies.
One analyst expects KOSDAQ could continue to do somewhat better than KOSPI through the fourth quarter, but the outlook for a sustained rally remains uncertain.
The KOSDAQ rose 4.24% in October, while the KOSPI fell 3.1%, according to Yonhap Infomax data cited by Yonhap.
The KOSDAQ’s relative strength has drawn investor attention, but analysts say a return above 1,000 is uncertain.
The index’s gains have been led by semiconductor materials, parts and equipment stocks, rather than a broad improvement in company fundamentals.
High interest rates and weak investor sentiment may limit gains, although one analyst expects the KOSDAQ to do somewhat better than the KOSPI through the fourth quarter.
- Who
- KOSDAQ-listed companies and investors. Analysts cited include Kim Jae-seung of Hyundai Motor Securities and Heo Jae-hwan of Eugene Investment & Securities.
- What
- The KOSDAQ is outperforming the KOSPI, but analysts say its return to 1,000 is uncertain.
- When
- October 2026, with comparisons to August and September.
- Where
- South Korea’s stock markets.
- Why
- Semiconductor materials, parts and equipment stocks have risen, while individual investors’ interest has supported the KOSDAQ. High interest rates and a lack of improving fundamentals may constrain further gains.
This story does not have two clearly opposing sides.
There is nothing changing in earnings, which can be called fundamentals, or in investor sentiment
The KOSDAQ may do a little better than the KOSPI throughout the fourth quarter
With interest rates so high, it seems to be a burden for small- and mid-cap stocks
The KOSDAQ fell below 1,000.
The index fell into the 600s.
The KOSDAQ rose 15.91%, while the KOSPI gained 3.4%.
The KOSDAQ rose 2.59%, while the KOSPI gained 0.26%.
The KOSDAQ closed in the 900s for the first time in about three months.
Around Samsung Electronics’ third-quarter earnings announcement, the KOSDAQ fell back below 900.
- KOSDAQ October change
- Up 4.24%
- KOSPI October change
- Down 3.1%
- KOSDAQ August change
- Up 15.91%
- KOSDAQ daily average trading value in October
- 8.6943 trillion won
- KOSDAQ level on October 6
- Closed in the 900s
Sources
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