Mirae Asset Global Investments said Monday it projects further gains in the country’s secondary bourse Kosdaq, following a sharp rally this year.
Amid a buoyant domestic stock market, the tech-heavy index surged past 1,000 points on Jan. 26 for the first time in four years and has continued to post gains, briefly touching a 52-week high of 1,180.87 on Friday.
Despite the sharp rise, Mirae Asset said the Kosdaq remains undervalued when viewed over a longer time horizon.
“The possibility of the Kosdaq surpassing the 3,000-point milestone should be viewed positively,” Jung Ui-hyeon, head of the exchange-traded fund management division, said during an online seminar.
“With the Kosdaq being a relatively small market with a market capitalization of about 600 trillion won ($414 billion), the index tends to react quickly to capital inflows,” he said. “Client deposits have surpassed 100 trillion won and transaction volume has surged, showing that a ‘money move’ is underway.”
Jung further suggested the Kosdaq’s price-to-book ratio may look stretched in the short term, but its premium remains below that of the Kospi.
With operating profit consensus for Kosdaq-listed companies projected to rise about 56 percent year-on-year in 2026, the current valuation premium can be sufficiently justified, he explained.
He also pointed to growing expectations for policy initiatives aimed at boosting the Kosdaq as another reason behind the rally, saying, “The government’s push to lift the Kosdaq has been a key driver of the index’s gains.”
At the seminar, Mirae Asset said a “core-satellite” strategy is effective for investing in the Kosdaq, with a core allocation providing broad market exposure and satellite investments targeting high-conviction growth sectors and themes.
"Investors can use the benchmark-tracking 'Tiger Kosdaq 150 ETF' as a core asset, and combine it with satellite allocations in sectors such as biotechnology, semiconductor materials, parts and equipment and robotics," Jung said.
silverstar@heraldcorp.com
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