The KOSDAQ-listed TAE KWANG CORPORATION and COSMO AM&T have benefited from the impact of Kumyang's removal from the KOSPI major indices.
According to the Korea Exchange on the 9th, the battery corporation Kumyang will be excluded from 19 major KOSPI indices, including KOSPI 100 and KOSPI 200, starting on the 10th.
The Korea Exchange selects KOSPI 200 stocks annually through regular evaluations in June and December, considering market capitalization and transaction value. Kumyang was automatically delisted due to being designated as a management item on the 4th.
Kumyang was designated as a non-compliant corporation due to the reversal of the public announcement regarding a capital increase decision on the 4th, receiving a penalty point of 7, leading to a cumulative penalty of 17 points and designation as a management item.
If the cumulative penalty points reach 15, a management item designation will be issued. Kumyang previously received 10 penalty points for a public disclosure violation related to a Mongolian mining development project in October of last year.
As a result of Kumyang's exit, TAE KWANG CORPORATION is included in the relevant indices, such as KOSPI 200 and 7 other indices. COSMO AM&T is incorporated into the two indices, including KOSPI 100. Additionally, LIG Nex1 will be included in the two indices such as KRX100.
In particular, since the KOSPI 200 index is used as a benchmark by major domestic exchange-traded funds (ETFs) like KODEX 200 and TIGER 200, a substantial amount of passive funds is expected to flow into Taekwang Industrial.
Meanwhile, according to FnGuide, stocks upgraded from mid-cap to large-cap in the KOSPI have averaged a revenue yield exceeding 7.9% over a three-month period following their inclusion.