Buoyed by an uninterrupted winning streak for about half a year, the combined market capitalization of South Korean stocks listed in the country’s both primary and secondary bourses surged more than 20 percent over the first five months of this year, outperforming its global peers, except those in India.

According to Korea’s stock operator Korea Exchange on Monday, the total market capitalization of stocks listed on the benchmark main Korean Composite Stock Price Index (Kospi) and second-tier Korean Securities Dealers Automated Quotations (Kosdaq) markets reached $1.55 trillion as of the end of May, up 20.8 percent from $1.28 trillion tallied as of the end of December last year. Over the same period, the combined market capitalization of 81 members of World Federation of Exchanges inched up 2.5 percent from $70.1 trillion to $71.9 trillion.

The bull run has allowed Korean stocks’ market capitalization to ascend one notch to the 14th largest among the 81 World Federation of Exchanges member indices. The gain is also the world’s third biggest addition over the cited period following India’s National Stock Exchange (25.6 percent) and Bombay Stock Exchange (25 percent). Germany’s Deutsche Borse rose 17.3 percent, the fourth largest gain, followed by Euronext 16.2 percent, SIX Swiss Exchange 16.0 percent, Nasdaq Nordic Exchanges 15.5 percent, and Hong Kong Exchanges and Clearing 14.7 percent.

Growth in Korean stocks has accelerated since the country’s new President Moon Jae-in entered office in May, removing political uncertainty and allowing investors, especially foreign investors, regain confidence about the country’s economy with the new government’s heavy spending plans on top of growing expectation for strong earnings. In May alone, the benchmark main index added 6.4 percent, while it had gained 15.8 percent in the first five months. The Kospi closed up 0.4 percent, or 9.07 points, at 2,370.90 on Monday, and the secondary Kosdaq added 0.7 percent, or 4.74 points, to end at 675.44.

Korea’s combined stock market capitalization accounted for 2.2 percent of the world’s total market capitalization. By region, the value of stock markets in the Asia-Pacific region increased by the largest 7.0 percent as of the end of May compared to the end of December last year, followed by the Americas 6.3 percent. The combined market value of exchanges in Europe Africa, and Middle East dropped 11.4 percent.

By Chung Woo-sung

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]