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South Korea bourse to decide cap on Samsung’s index weighting in June – Source Reuters Tech News

FILE PHOTO: The logo of Samsung Electronics is seen at its office building in Seoul, South Korea, Jan. 7, 2019. REUTERS/Kim Hong-Ji/File Photo

SEOUL (Reuters) – South Korea’s stock exchange said on Wednesday that it would decide in June whether the weighting of Samsung Electronics in the KOSPI 200 index should be capped.

The Korea Exchange said in a statement that though it discussed whether to adopt a 30% cap before June, the plan was put off after discussions with the industry.

An official at the exchange told Reuters that the bourse is expected to limit the maximum weighting of any single stock to 30% within the index while using a 3-month average market weight during March to May.

Samsung Electronics accounted for 32.9% of Korea’s bluechip KOSPI 200 as of Tuesday, the official added.

Reporting by Joori Roh, Hayoung Choi; Editing by Shri Navaratnam

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