Hyundai Motor Co. has won back the seventh place in terms of market capitalization on the back of a sharp gain in stock price on Nov. 27.
Hyundai Motor closed at 101,000 won (US$89.50) on that day, up 6.2 percent from a day earlier. It was the largest increase since the 7.41 percent gain on Oct. 26 last year. The company's stock price remained unchanged on Nov. 28.
The price of Hyundai Motor shares fell below 100,000 won (US$88.61) on Nov. 20 for the first time in nine years due to the sluggish market and the recall issue, but there was a large influx of foreign capital on Nov. 27 to purchase the shares at a low price.
Foreign investors seemed to pay attention to Hyundai Motor as Hyundai Motor's undervaluation attractiveness increased following the continuous fall in share price. The news that U.S.-based General Motors Co. would carry out a large-scale restructuring, including 14,700 lay-offs in North America, also led foreign investors to look to Hyundai Motor. Foreigners net bought 46.9 billion won (US$41.56 million) worth of Hyundai Motor shares on the same day.
Hyundai Motor had nearly 9 percent rise in total, showing a rising trend for three trading days in a row. Accordingly, the company moved up two spots from ninth to seventh in market capitalization on the benchmark KOSPI market. Hyundai Mobis Co. also closed up 4.49 percent to 174,500 won (US$154.63) and Kia Motors Corp. finished 2.91 percent ahead to 26,450 won (US$23.44). The market has expectations for Hyundai Motor’s flagship sedan “Genesis G90,” which was released for sales on the same day.
The securities industry expects that Hyundai Motor’s sluggish sales will gradually pick up starting from next year. According to market research firm FnGuide, Hyundai Motor’s annual operating profit is expected to be down about 38 percent to 2.86 trillion won (US$2.53 billion) this year, but it is forecast to grow to 3.92 trillion won (US$3.47 billion) next year.