Top 10 S. Korean conglomerates' market cap shrinks by US$ 173 bil.

  • 5 years ago
10대그룹 시총 1년새 195조 증발…한화 현대차 감소폭 커

The country's top ten conglomerates saw their market cap fall sharply this year.
The driving factors include slowing domestic economy as well as the ongoing tariff war between Washington and Beijing
Here's Kim Hyesung with a break-down of the digits.
The market value of South Korea's top ten conglomerates shrank this year by 173 billion U.S. dollars.
According to the Korea Exchange, as of last Friday, their combined market cap... ranked by total assets... came to 729 billion dollars, down 19-point-two percent from the same period last year.
Their proportion of total market cap also fell 1-point-six percent on year... to 51-point-three percent.
The data show Korea's key conglomerates, including Samsung Group...all fell by double digits.
In particular, the market caps of Hanwha Group and Hyundai Motor were down nearly 35 percent and 30 percent, respectively.
Nine out of the top 10 conglomerates saw their market cap fall,... the one exception being Hyundai Heavy Industries,... whose value went up three-point-nine percent.
"Usually, in a bear market, blue chip stocks fare better than small caps. Blue chip shares, though, have fallen by an amount similar to or more than the KOSPI for reasons like the slowing local economy, the U.S.-China trade spat and weaker stock markets in the U.S. But the biggest reason is the gloomy outlook for Korea's leading industries like autos and semiconductors... in which foreign investors have been selling their holdings."
So far this year, the benchmark KOSPI has fallen by more than 16 percent... with the value of shares on the local bourse skidding to 1-point-4 trillion dollars.
With the global and local economies expected to slow down next year, experts say, Korean shares are unlikely to recover to their 2017 levels.
Kim Hyesung, Arirang News.

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