Significant Changes in Top 10 Market Capitalization Rankings Before and After COVID-19

[Asia Economy Reporter Koh Hyung-kwang] The KOSPI, which had fallen to the 1400 level due to the impact of the novel coronavirus infection (COVID-19), has surpassed the 2300 mark, causing a rapid shift in the market capitalization landscape. The notable rise of companies like Kakao and Samsung SDI in the top 10 is particularly striking.

According to the Korea Exchange on the 6th, compared to January 22, when the market capitalization of the top 10 KOSPI companies by closing price hit a pre-COVID-19 peak, most companies except Samsung Electronics, SK Hynix, and Naver have changed positions.

Samsung Electronics and SK Hynix firmly held the 1st and 2nd places, but their market capitalizations shrank by 8.7% (KRW 32.23 trillion) and 20.1% (KRW 14.77 trillion), respectively, compared to six months ago. On the other hand, Naver maintained its 4th place ranking, but its market capitalization increased by 68.0% (KRW 20.84 trillion), from KRW 30.65 trillion on January 22 to KRW 51.49 trillion the previous day. This was thanks to a significant rise in stock price as it was spotlighted as a beneficiary of the untact (contactless) trend.

The upward trend of Kakao, considered one of the two major domestic IT service companies alongside Naver, is also noteworthy. Kakao was only ranked 22nd in KOSPI market capitalization six months ago, but its stock price surged, pushing it up to 8th place the previous day. Its market capitalization more than doubled (127.4%), increasing from KRW 14.31 trillion to KRW 32.54 trillion. The recent growth of related industries such as e-commerce and electronic payments due to increased untact consumption led to a vertical rise in its stock price.

LG Chem, the leader in secondary batteries, rose from 7th to 5th place, with its market capitalization soaring 90.6% from KRW 24.81 trillion to KRW 47.29 trillion during this period. Another secondary battery-related stock, Samsung SDI, saw its market capitalization increase by 63.6% (KRW 12.51 trillion) over six months, jumping five ranks from 14th to 9th place.

Samsung Electronics Preferred Shares, which were previously ranked 3rd, dropped to 7th place as their market capitalization decreased by 2.3% (KRW 9.46 trillion). The 7th place spot was taken by Samsung Biologics, which was ranked 5th six months ago. Samsung Biologics' market capitalization increased by 74.1% (KRW 22.16 trillion) over six months. Celltrion, a rival of Samsung Bio, also rose three ranks from 9th (KRW 22.65 trillion) to 6th (KRW 42.5 trillion) during the same period.

On the other hand, Hyundai Motor, which once rose to 2nd place in market capitalization rankings, has seen its stock price weaken this year, causing its market capitalization ranking to fall four places from 6th in mid-January to 10th the previous day. Seo Sang-young, a researcher at Kiwoom Securities, said, "Since the COVID-19 outbreak, companies expected to benefit from bio and untact consumption have continued to perform strongly, while traditional manufacturing-related stocks have struggled relatively."