Even During Market Adjustment: Samsung Group’s Market Capitalization Share in Stock Market Increases | BusinessKorea

Monday, September 25, 2017

The share of Samsung Group’s market capitalization in the stock market increased further during the KOSPI index adjustment started in August.
The share of Samsung Group’s market capitalization in the stock market increased further during the KOSPI index adjustment started in August.
SEOUL,KOREA
14 September 2017 - 1:15pm
Yoon Yung Sil

The share of Samsung Group’s market capitalization in the stock market increased further during the KOSPI index adjustment which has been started from August. As the share of the market capitalization of 10 other business groups, excluding Samsung, also grew, the KOSPI market now has a higher level of dependence on conglomerates.

According to the Korea Exchange on September 13, the total market capitalization of Samsung Group’s listed subsidiaries amounted to 497.11 trillion won (US$440.51 billion), accounting for 32.36 percent in the stock market. The figure increased 0.87 percent points from 32.49 percent in early August when the KOSPI index has been started adjusting due to the North Korea risk. The market capitalization of Samsung Group grew 1.67 trillion won (US$1.48 billion) over the same period but the total market capitalization of the KOSPI market decreased rather than increased. The market capitalization of the stock market dropped 2.36 percent from 1,573.33 trillion won (US$1.39 trillion) in early August to 1,536.06 trillion won (US$1.36 billion) as of the 13th. However, the market capitalization of Samsung Group rose 0.33 percent. In short, the stock price of Samsung Group’s listed affiliates increased, though the stock price of listed companies decreased more than 2 percent during the period of index adjustment.

The percentage of market capitalization of top business groups, excluding Samsung, also rose over the same period. The combined market capitalization of the nation’s top 10 business groups, including LG, Hyundai Motor, POSCO, Lotte, CJ, Hanwha, Hyundai Heavy Industries, KT&G and S-Oil as well as runner-up SK Group, took up 30.36 percent in the stock market as of the 13th. The figure increased 0.54 percent points from 29.82 percent earlier last month. The market capitalization of the 10 groups went down by 2.71 trillion won (US$2.4 billion) from 469.11 trillion won (US$415.7 billion) to 466.4 trillion won (US$413.29 billion) over the same period, but the fall rate stood at 0.57 percent, which was lower than the total fall rate of market capitalization in the stock market.

The stock market dependence on Samsung Electronics also rose during the period of index adjustment. The share of Samsung Electronics in the stock market increased 0.78 percent points from 20.18 percent in early August to 20.96 percent as of the 8th. The closing price of Samsung Electronics’ shares declined to 2.21 million won (US$1,959) on August 11, but the figure has continued its upturn this month to 2.48 million won (US$2,198) on the same day. It fell short of 2.56 million won (US$2,269) of an all-time high. However, it is expected to increase further as it has shown an upward trend.

When the North Korea’s nuclear risk evens out, the large cap stocks, mainly of information technology (IT) companies, will soon rally in the second half of this year and the stock price of listed subsidiaries of the top business groups is highly likely to rise further. Kim Byung-yeon, an analyst with NH Investment & Securities, said, “Samsung Electronics’ performance estimates in the third

 

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