KOSDAQ breaches 600

The tech-heavy Korean Securities Dealers Automated Quotations index broke the 600 mark for the first time in six years on expectations of strong growth among small and medium tech enterprises.

The KOSDAQ finished at 600.81, up 2.58, or 0.43 percent.

The tech index had been trapped below the 600 threshold since the index hit 602.74 on June 26, 2008.

The country’s benchmark KOSPI closed at 1,952.84, down 9.95 or 0.51 percent.

The KOSDAQ has continued to gain since early this week on the back of government policies aimed at spurring the tech sector.

It jumped 8.9 percent in January on-month, and is expected to maintain its momentum.

Analysts said that falling oil prices, uncertainties in Greece and other global variables have deteriorated investor sentiment toward blue chips on the KOSPI, pushing investors to invest in tech stocks on the KOSDAQ.

The KOSDAQ, which benchmarks the U.S. NASDAQ, mostly consists of information and communication technology firms, game developers and platform players, including Daum Kakao, the operator of Korea’s most used messenger, Kakao Talk.

The government’s recent announcement to support fintech ― technology converged with finance ― has also driven investors’ interest in KOSDAQ stocks, analysts said.

Institutional and foreign investors’ increasing investment in tech stocks is also attributable to the KOSDAQ’s rise above 600.

“Meanwhile, uncertainties led retail investors to withdraw from the KOSDAQ,” said analyst Lee Nam-ryong of Samsung Securities. 

By Chung Joo-won (joowonc@heraldcorp.com)