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Kospi is rallying, but stocks aren’t catching up

May 02,2017
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Industry leaders listed on the Kospi have seen slower growth in their stock value compared to overall growth on the country’s benchmark index, according to the latest data from Korea’s stock market operator.

The average share value growth of 18 stocks representing the top companies in 18 industries was 3.65 percent as of April 25, the Korea Exchange said Monday. That’s far below the Kospi’s overall growth of 8.41 percent.

Out of the 18 stocks, only four were able to exceed the Kospi’s growth so far this year.

Samsung Biologics, which publicly listed last year, saw the sharpest increase in share value this year, 21.85 percent, followed by Samsung Electronics with 18.48 percent, Hyundai Engineering and Construction with 17.76 percent and SK Telecom with 11.38 percent.

Those that rose but failed to reach growth equivalent to that of the Kospi included Shinhan Financial Group, LG Chem, steelmaker Posco, apparel company Hansae, Samsung C&T and energy company Kepco.

Those that saw declines in share value included Hyundai Motor, logistics company Hyundai Glovis and food producer CJ CheilJedang.

Among those that saw a drop, Hanon System, a supplier of automotive parts, saw the sharpest decline in value of more than 16 percent.

One of the biggest changes in the ranks was in financial shares, where Shinhan Financial Group outpaced Samsung Life Insurance to become the top financial company in terms of market capitalization.

Samsung Life Insurance, which saw its stock value drop 1.8 percent, fell to third this year, while the second spot went to KB Financial Group.

In cosmetics, LG Chem overtook last year’s No. 1 AmorePacific. LG Chem’s market capitalization was 19.7 trillion won ($17.3 billion), while AmorePacific was at 17.2 trillion won.

Market analysts noted that particularly sharp increases in share value were concentrated in electronics. In the first four months of the year, the average value of electronic shares rose 18.42 percent, followed by telecommunications stocks with 12.55 percent and construction at 9.95 percent.

On the other side of the scale, machinery, transportation equipment and non-metal minerals all fell.


BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]