Samsung, SK, Hyundai see gain in market cap

Amid a sluggish stock market, the top three South Korean conglomerates -- Samsung, SK and Hyundai Motor Group -- saw their market capitalizations rise this year, while values of the other top 10 plunged in the same period, data compiled by a local market tracker showed.

According to FnGuide, the combined market cap of Samsung’s 16 listed subsidiaries increased nearly 18 percent, from Jan. 2 to Oct. 30, to 434.9 trillion won ($382 billion). Of the 16 subsidiaries, nine saw a growth in their market caps, while seven saw a decline.

The group’s flagship unit Samsung Electronics’ market value increased nearly 30 percent, or 69.5 trillion won, to 300.9 trillion won as of last month from the beginning of the year. 

Samsung Electro-Mechanics and advertising arm Cheil Worldwide, saw double-digit growth of 13 percent and 11 percent, respectively. The group’s insurance units Samsung Fire and Marine, and Samsung Life Insurance saw their market caps drop 12 percent and 18 percent, respectively.

SK Group’s 19 listed subsidiaries saw a combined gain of nearly 12 percent in the January-October period, led by its chipmaking arm SK hynix’s growth in market cap.

SK hynix’s market cap jumped nearly 35 percent to 59.7 trillion won from 44.1 trillion won in the cited period, despite a drop in global chip sales for the eighth consecutive month on-year.

The combined market value of Hyundai Motor Group’s 12 subsidiaries increased 12 percent in the cited period to 86.3 trillion won. Its nine subsidiaries including Kia Motors, Hyundai Wia and Hyundai Mobis all saw growth in their market caps, while three others saw a drop.

In contrast, retail giant Lotte Group and Hanwha Group saw the steepest declines in market cap by shedding nearly 21 percent and 24 percent to 20.8 trillion won and 9.2 trillion won, respectively, in the cited period.

The combined market cap of LG Group’s 12 subsidiaries shed nearly 1 percent to 79.9 trillion won in the same period.

Heo Jae-hwan, an analyst at Eugene Investment & Securities cited the current slow economic growth behind the stark contrast in market cap gain between the companies, saying that it’s easier for firms with higher market share to boost their value in such times.

By Jung Min-kyung (mkjung@heraldcorp.com)