The Korea Exchange plans to publish KRX100 beginning on June 1, 2005. KRX100 is a free-float market value weighted index and its constituent stocks are chosen from both the Stock Market(87 issues) and Kosdaq Market(13 issues).
- To ensure that KRX100 accurately represents the market, the 100 constituent stocks are chosen on the basis of such criteria as the market capitalization, liquidity(trading value), profitability(return on equity), soundness(reserve ratio) and financialsecurity(debt ratio).
- Full title of index: Korea Exchange 100
- Abbreviated title: KRX 100
Main Criteria in KRX100 Calculation
- Number of constituent stocks: 100
- Base date and base index: January 2, 2001, 1000
- Regular realignment of constituent stocks: Annually on the Friday of the second week in June
- Upper limit on weight of market capitalization: Market capitalization of one issue should not exceed 15% of total market capitalization of KRX100. Criteria for selection of constituents
- Market size: Market capitalization
- Liquidity: Trading value
- Financial criteria: Return on Equity, debt ratio, reserve ratio
- Industry classification: 26 industry groups
- Constituent Selection Methods: Each criterion is scored on the basis of 100 points and the score for each criterion is tallied. Then, two issues in each industry group are chosen first as the representative issues of the industry, and the rest of constituents are chosen according to the ranking order of the total score calculated.
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