On the 27th, IBK Securities said that institutional investors' massive net buying of more than 2.5 trillion won in KOSDAQ stocks the previous day reflected a shift in policy focus diversifying from KOSPI to KOSDAQ.
On the 26th, institutions sold large amounts of KOSPI stocks and showed net buying in KOSDAQ. Since the new government was launched in June last year, the government has formed the KOSPI 5000 special committee and pushed to revitalize the capital market. As a result, KOSPI at one point this year rose above the 5,000 level, achieving the pledge.
Accordingly, IBK Securities noted that it is worth paying attention to the possibility that policy direction could shift to the relatively neglected KOSDAQ market.
Byun Jun-ho of IBK Securities said, "There is a strong possibility that KOSDAQ policy will diversify due to the current administration's strong expression of intent to normalize the KOSDAQ market, the naming of a third venture boom and the will to invigorate the venture market, and expectations that plans to enhance trust and innovation in the KOSDAQ market last year will be fleshed out."
The KOSDAQ market is at a fundamental disadvantage compared with KOSPI and large-cap stocks. In particular, in terms of earnings, the KOSDAQ market showed weakness in estimates for 2024 and this year.
Byun said, "Comparing the earnings growth rate of the KOSDAQ 150 index and KOSPI, in 2024 KOSDAQ underperformed due to large losses at corporations related to secondary batteries, and this year's relative weakness is because large semiconductor stocks are strongly driving KOSPI's earnings growth rate."
However, Byun projected that KOSDAQ's fundamental disadvantage will gradually ease. Reasons include that the difference in this year's earnings growth rate has been priced in since the second half of last year, and that next year's earnings growth rate is expected to see the KOSDAQ 150 index outpace KOSPI.
Byun said, "This year, liquidity, supply-demand, and price effects could appear for the KOSDAQ 150 index," adding, "The government's KOSDAQ market revitalization policies are likely to be clearly reflected in the KOSDAQ 150 index."