Analysts say that at least part of the reason for the decline is that small investors are dumping shares in favor of Bitcoin, exacerbating a rout that has wiped out around a fifth of the value of the stock index this year.
Bitcoin’s breakneck rally since the recent election victory of Donald Trump is piling pressure on a far-flung corner of the capital markets: small cap stocks in South Korea.
The cryptocurrency has jumped nearly 35% since Trump’s election win on Nov 5, while the small cap-dominated Kosdaq Index has fallen 8%, putting it on track to be Asia’s worst performing index this year.
