Market Surge
The market capitalizations of the 10 largest Korean conglomerates have reached 40 trillion won in a month and a half, according to securities information firm FnGuide.
According to FnGuide on July 25, market caps swelled by 3.05 percent to 1,341.2603 trillion won (US$1.0533658 trillion) as of the close of the stock market on June 21 from 1,301.6096 trillion won on June 1.
POSCO Group’s market cap surged more than 50 percent, from 66.6307 trillion won to 100.951 trillion won. By individual company, the order was Hanwha Ocean (226.99 percent), POSCO DX (175.82 percent), POSCO International (69.62 percent), POSCO Steeleon (62.24 percent), and POSCO Holdings (52.63 percent). It is noteworthy that four POSCO Group stocks are among the top five in terms of market cap growth.
During the same period, Hanwha and HD Hyundai also posted double-digit growth, rising 30.65 percent and 22.36 percent, respectively.
Hanwha Group’s market cap increased 30.65 percent to 32.5854 trillion won as of the close of the stock market on July 21, up from 24.9411 trillion won at the beginning of June.
Hanwha Ocean’s market cap inflated 226.99 percent, driving the growth of Hanwha Group’s market cap. The company changed its name from Daewoo Shipbuilding & Marine Engineering (DSME) on May 23. A slew of good news for the Korean shipbuilding industry has arrived as expectations for a recovery have been on the rise.
Among the big four Korean business groups (Samsung, LG, SK and Hyundai Motor), Hyundai Motor Group had the highest market cap growth rate. Its market cap ascended by 3.50 percent during this period. SK Group followed with a modest increase of 0.66 percent, while Samsung’s and LG’s market caps declined by 0.70 percent and 2.50 percent, respectively.
GS was the group with the largest market cap drop. Its market cap plummeted by 7.87 percent to 9.17 trillion won on July 21 from 9.9603 trillion won at the beginning of June. This is because GS E&C lost over 30 percent of its market cap as its stock price plummeted after a parking lot collapse.
Lotte Group’s and Shinsegae Group’s market caps also shrank by 7.87 percent and 5.32 percent, respectively.