April 27, 2024

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An electronic signboard shows KOSPI closing at 2,666,84 on Friday. (Yonhap)

Financial sector rises while secondary battery stocks decline

As stock prices of large-cap stocks fluctuate since the beginning of the year, the ranking of the top companies by market capitalization has changed significantly.

Expectations surrounding “value-up” programs have led to a surge in rankings of low PBR (Price-to-Book Ratio) stocks such as those in the financial sector, while secondary battery stocks have collectively slipped.

Financial stocks and other low PBR stocks jumped on expectations of valuation programs, while secondary battery stocks slipped.

According to the data from the Korea Exchange on Saturday, among the top 20 market cap stocks on the KOSPI as of Friday, 15 stocks have changed positions compared to the end of last year.

The stock that saw the most significant rise in ranking was Hana Financial Group, jumping eight spots from 28th at the end of last year to 20th this month. Its market cap during this period increased from 12.6888 trillion won to 18.1555 trillion won, a gain of 5.467 trillion won.

KB Financial Group also climbed seven spots from 17th to 10th at the end of last year. It rose to the top 10 in market cap for the first time in five years and three months since December 2018.

Following closely were movements in the rankings of Celltrion (from 12th to 8th), Shinhan Financial Group (from 18th to 15th), and Samsung Life Insurance (from 21st to 19th), showing significant upward momentum.

Conversely, concerns over weakening demand for electric vehicles and poor business conditions led to a downward trend in the rankings of secondary battery stocks. Among them, Posco Chemical (from 13th to 17th) experienced the largest decline, followed by Posco Holdings (from 7th to 9th), Samsung SDI (from 11th to 13th), and LG Chem (from 10th to 11th).

Kakao dropped four spots from 14th at the end of last year to 18th this month, while Naver slipped 3 spots from 9th to 12th. On the other hand, Samsung Electronics, SK hynix, LG Energy Solution, Samsung Biologics, and Hyundai Mobis maintained their positions in market cap rankings.

In a significant shake-up within the KOSDAQ market, 16 out of the top 20 companies by market capitalization have witnessed a reversal in their rankings.

One notable standout is Shinsung Delta Tech, which failed to break into the top 50 in market capitalization rankings at the end of last year but surged to a remarkable 10th position this month.

Nchem made a substantial leap, climbing a staggering 30 spots from 37th place at the close of last year to the impressive 7th rank this month, while HLB Life Sciences made a notable jump from 47th to 16th place, ascending by 31 ranks. 

On the flip side, JYP Entertainment experienced the most notable decline, slipping four spots from 7th at the end of last year to 11th place this month. Kakao Games also faced a substantial descent, dropping three spots from 16th at the close of last year to 19th this month, marking the second largest decline.

In the realm of secondary battery stocks, Ecopro Biotech and Ecopro retained their top two spots in terms of market capitalization, but their market caps dwindled to 3.81 trillion won and 1.225 trillion won, respectively.

The total market capitalization of the KOSPI market has seen an increase, rising to 2,171.247 trillion won this year from 2,126.373 trillion won at the end of last year, marking a growth of 44.874 trillion won. In contrast, the KOSDAQ market contracted to 416.940 trillion won from 431.792 trillion won at the end of last year, displaying a decrease of 14.852 trillion won.

Experts anticipate a period of consolidation in the domestic stock market, noting the recent surge in low PBR stocks. Analyst Lee Woong-chan of Hi Investment & Securities remarked that while value-related stocks have seen significant gains, the momentum seems to have waned, according to Yonhap News. 

With Nvidia also entering a corrective phase in the US market, Lee foresaw a period of stagnation in the domestic market without clear leadership, emphasizing a period of consolidation ahead.

By Investor News (Investor@heraldcorp.com)