KOSPI

Last updated • 2 min readFrom Wikipedia, The Free Encyclopedia

KOSPI
Kospi-20170713.png
KOSPI performance between 1980 and 2020
Foundation1980;45 years ago (1980)
Exchanges Korea Exchange
Trading symbol^KS11
Constituents928
Market cap 2,254 trillion ( January 2023)

The KOSPI 200 index consists of 200 big companies of the Stock Market Division. The base value of 100 was set on 3 January 1990. It has over 70% market value of the KOSPI, and so moves along with the KOSPI index. KOSPI 200 is important because it is listed on futures and option markets and is one of the most actively traded indices in the world. The KOSPI is calculated as current market capitalization (at the time of comparison) divided by base market capitalization (as of 4 January 1980).

That is: Current index = Current total market cap of constituents × 100 / Base Market Capitalization [6]

Its all-time low is 31.96, reached on 16 June 1998, during the financial crisis. It closed above 200 for the first time on 24 April 2007.

Kospi 200 futures (ticker symbol KOS) are traded on the Korean Futures Exchange. Contracts are quoted in index points with each contract size valued at 250,000 index points. [7] CQG contract specifications for the kospi 200 can be found in the table below.

KOSPI 200: Contract Specifications [7]
Contract Size250,000 Points
ExchangeKRX
SectorIndex
Tick Size0.05
Tick Value12500 KRW
Big Point Value (BPV)KRW
Decimal Places2

KRX 100

KRX 100 is the index of 100 companies listed on Korea Exchange, including KOSDAQ's big companies. It's meant to replace KOSPI 200 as the key futures index, but has not been very successful to date.

KRX derivatives products

Investment procedures for foreigners

To trade futures and options contracts listed on KRX, a foreign investor may designate custodian banks as standing proxies (through custodian bank agreements and standing proxy agreements to facilitate trading).[ citation needed ]

A custodian bank as a standing proxy opens accounts at foreign exchange banks and futures companies, deposits, and withdrawals investors' money and monitors investors' properties for them. A foreign investor should designate foreign exchange banks through a foreign currency exchange agreement to execute his foreign exchange transactions and transfers. Most foreign exchange banks also do custodian bank and standing proxy operations. A foreign investor should designate securities and futures companies to trade futures and options traded on KRX.[ citation needed ]

See also

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References

  1. "Kospi hits record 2,602.59 as optimism continues after U.S. election result". Korea JoongAng Daily . 23 November 2020. Retrieved 16 April 2021.
  2. Huang, Eustance (23 February 2020). "South Korea stocks drop nearly 4% as country raises coronavirus alert to 'highest level'". CNBC.
  3. Kirk, Donald (15 March 2020). "Coronavirus Hits South Korean Markets Despite Easing Of Crisis". Forbes .
  4. "Historical data: KOSPI Index - South Korea (^KOSPI)".
  5. "KOSPI Composite Index (South Korea) Yearly Stock Returns". www.1stock1.com. Retrieved 20 January 2020.
  6. KOSPI 200 weighting methodology via Wikinvest
  7. 1 2 "Historical Kospi Intraday Data (KOS)". PortaraCQG. Retrieved 6 September 2022.

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