Korea Exchange to launch new stock index next week

South Korea’s stock market operator, the Korea Exchange, said Wednesday it will introduce a new stock index to provide reliable data to investors seeking safer and profitable investments.

The index, dubbed the S&P/KRX Dynamic Asset Exchange Index and based on the KOSPI 200 Index and 10-year U.S. Treasuries, is scheduled to be launched at the first trading session of next week, the KRX said. It will be presented from 9:01 a.m. to 3:00 p.m., with the base standing at 1,000.000, it added.

The KOSPI 200 Index is a basket of 200 blue chip shares listed on the main Seoul bourse.

Developed under cooperation with S&P Dow Jones Indices LLC, the new index is expected to provide investors with a creditable guideline amid rising volatility on the local stock market, the KRX said.

“The new index is reliable in that it changes the portion of the KOSPI 200 Index and 10-year U.S. Treasuries flexibly according to their performances and the market conditions,” said Park Myung-woo, a senior manager at the KRX. “The KRX is currently under talks with local brokerage houses to develop equity funds as well as ETF products linked to the new index.”

Exchange-traded funds are investment funds traded on stock exchanges and represent a basket of stocks that reflect an index. They give retail investors and institutions a more liquid and risk-hedging tool. (Yonhap News)