The KOSPI index has more than doubled over the past year, reaching the 6900 mark, but not all investors are benefiting from this rally. While the index has soared to record highs, some major stocks are trading at lower prices than a year ago.
According to the Korea Exchange, the KOSPI closed at 6909.91 on September 11, marking a 106.62% increase compared to the closing price of 3344.20 on the same day last year. This represents more than a twofold rise in the index.
However, the performance of individual stocks has varied significantly. NAVER's stock price fell from 233,000 won on September 11 last year to 206,500 won on September 11 this year, resulting in a one-year return of -11.37%. This trend contrasts sharply with the KOSPI's more than 100% increase during the same period.
Krafton experienced an even steeper decline, with its stock price dropping from 324,500 won last year to 212,500 won this year, a decrease of 34.51%. If an investor held 10 million won worth of Krafton shares a year ago, their investment would now be valued at approximately 6.55 million won.
LG Chem also failed to recover its price from a year ago, falling from 290,000 won to 273,000 won, a decrease of 5.86%.
In contrast, semiconductor giants saw significant gains. Samsung Electronics' stock surged from 73,400 won last year to 259,500 won this year, an increase of 253.54%. Similarly, SK Hynix's stock skyrocketed from 307,000 won to 1,812,000 won, marking a staggering 490.23% rise.
This disparity can be attributed to the KOSPI being calculated based on a market capitalization-weighted method rather than a simple average of individual stocks. When the prices of larger market-cap stocks rise significantly, the overall index can increase substantially, even if many other stocks perform poorly.
It is important to note that just because a stock's price is lower than it was a year ago does not necessarily mean it is undervalued. The appropriate price level can vary based on company performance, growth prospects, market conditions, and valuations.
* This article has been translated by AI.
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