The Korea Composite Stock Price Index (KOSPI) has been marching to record highs recently, but small- and mid-cap stocks have delivered relatively lackluster returns, deepening investors' sighs.
According to the Korea Exchange on the 12th, the KOSPI closed at 3,610.60 on the 10th, up 1.73% from the previous trading day. This is a 50.5% increase from the end of last year (2,399.49).
By market capitalization tier, the KOSPI large-cap index, composed of the top 1–100 large-cap stocks, has risen 54.7% so far this year, outpacing the KOSPI's return. Among the 100 constituents of this index, 87 rose compared with the end of last year, eight times the number of decliners (11).
Notably, gains in large semiconductor stocks stood out. Samsung Electronics' share price has risen 77% this year, from 53,200 won to 94,400 won. Over the same period, SK hynix also surged 146%, from 173,900 won to 428,000 won.
In contrast, the mid-cap index, composed of KOSPI stocks ranked 101st to 300th by market cap, has risen 32.8% so far this year. This falls short of the KOSPI's return (50.5%).
Of the 200 stocks in the mid-cap index, 144, or 72%, rose, while 50, or 25%, fell. The share of decliners among mid-caps (25%) was more than double that among large caps (11%).
In particular, the KOSPI small-cap index has risen only 16.8% so far this year. Not only did it trail the KOSPI's gain (50.5%) over the same period, it also underperformed both large caps (54.7%) and mid-caps (32.8%).
Among the 541 constituents of the KOSPI small-cap index, 179 stocks, or 33%, saw their prices fall compared with the end of last year. That is three times the share of decliners among KOSPI large caps (11%).
Among small caps, e-STARCO's share price fell 66.7%, from 1,899 won at the end of last year to 633 won this month. In addition, shares such as Inscobee (-53.9%), ILSUNG Construction (-64.8%), and SG Global (-50.6%) have been cut in half so far this year.
As a result, while large semiconductor stocks are extending their rally, investors holding small- and mid-caps are wearing long faces even in a "bull frenzy." In particular, there is analysis that the investment environment is not easy for individual investors, who tend to invest relatively more in small- and mid-caps, compared with institutions such as the National Pension Service and foreign investors, who mainly invest in large caps.