gettyimagesbank

Stocks included in the Korea Value-up Index, part of the government-led Corporate Value-up Program, have risen by an average of 3 percent since the index was launched last week, the Korea Exchange said Sunday, noting that 80 out of the 100 stocks have shown an increase.

The average fluctuation rate of Value-up Index stocks was 2.97 percent, based on a comparison of the closing prices from Tuesday to Friday. The index was revealed after the market closed last Tuesday.

The average increase in the stocks on the secondary Kosdaq bourse outpaced those of the benchmark KOSPI market. The average return for the 33 Kosdaq stocks was 4.11 percent, while the average return for the 67 KOSPI stocks was 2.38 percent.

Given that the KOSPI and Kosdaq index rose by 0.69 percent and 0.93 percent, respectively, during the same period, the performance of Value-up Index stocks is considered relatively strong.

"While large-cap stocks were largely expected to be included in the index, the surprise inclusion of small- and mid-cap stocks seems to have had a significant effect," Daishin Securities analyst Lee Kyung-min said.

"The lower liquidity of small- and mid-cap stocks also contributed to the higher rate of increase."

The stock that experienced the highest increase was EcoPro HN, a green solutions provider, which rose by 20.65 percent. This was followed by Hyosung TNC and Hanjin KAL with increases of 15.95 percent and 15.38 percent, respectively.

By sector, materials saw the highest increase at 5.77 percent, followed by manufacturing at 4.44 percent, information technology at 3.65 percent and communication services at 2.98 percent.

Health care and energy declined by 0.05 percent and 1.45 percent, respectively.

The information technology sector, which includes major semiconductor stocks such as Samsung Electronics and SK hynix, is interpreted to have been more influenced by Micron's strong performance in the United States than by inclusion in the index.

"Stocks (in the information technology sector) rose not primarily due to the Value-up Index but rather because concerns about the semiconductor industry were alleviated by Micron's strong performance, which led to a return of foreign investment," Mirae Asset Securities analyst Kim Seok-hwan said.

"Additionally, the impact of China's economic stimulus measures contributed to the rise in stock prices."

Hwang Se-woon, a senior researcher at the Korea Capital Market Institute, cautioned against excessive expectations for the stocks included in the Value-up Index, saying it is difficult to attach significant meaning to the stock price increase at this moment.

"Companies actively engaged in value enhancement should be included more in the index," Hwang said.