Top Market Cap Stocks Fluctuate Amid Increased Volatility

Stock Market Ranking Volatility Intensifies
KOSPI Ranks 3rd to 5th Change Within 30 Minutes
Fierce Competition for Top 10 in KOSDAQ as Well

[Asia Economy Reporter Song Hwajeong] Recently, as market volatility has increased, the top market capitalization stocks are also showing mixed trends. On the KOSPI, the competition for the 3rd place in market capitalization among the 'BBIG (Bio, Battery, Internet, Game)' leading stocks is intense, while on the KOSDAQ, ranking changes have occurred due to the listing of Kakao Games.

As of 9:30 a.m. on the 15th, the top 5 KOSPI stocks by market capitalization are Samsung Electronics, SK Hynix, Samsung Biologics, Naver (NAVER), and LG Chem, in that order. Early in the session, LG Chem rose to 3rd place but then fell back to 5th after yielding the 3rd spot to Samsung Biologics. Naver, which had dropped to 5th the previous day, climbed back to 4th. Within less than 30 minutes after the market opened, the 3rd, 4th, and 5th positions each changed once.

Among the BBIG sectors that have shown remarkable growth this year, the leading stocks Samsung Biologics, LG Chem, and Naver are fiercely competing for 3rd place. Samsung Biologics rose to 2nd place in market capitalization last month but then fell to 5th. LG Chem seemed to secure 3rd place afterward, but Naver reclaimed 3rd place this month. Since last week, Samsung Biologics has again taken 3rd place.

On the KOSDAQ, the appearance of Kakao Games has brought changes in market capitalization rankings. Kakao Games, which was listed on the 10th, surged to the upper limit price on its first day and entered the market capitalization rankings at 5th place. It recorded the upper limit price again the next day, climbing to 3rd place. There were expectations that Kakao Games would achieve 'ttasangsang (forming an opening price at twice the IPO price on the first day of listing followed by three consecutive days of upper limit price),' which would have pushed it to 2nd place in market capitalization. However, Kakao Games failed to maintain the upper limit price and turned bearish, falling back to 5th place. Additionally, HL Biotech rose more than 5% the previous day, overtaking Alteogen to reach 3rd place. With the emergence of Kakao Games, Celltrion Pharm and Genexine were pushed out of the top 5 in market capitalization, and SK Materials, which was in the top 10, also fell out of the top 10.

As market volatility expands, the competition for rankings is expected to become even more intense. Based on the previous day's closing prices, the market capitalizations of Samsung Biologics, LG Chem, and Naver are 50.4838 trillion KRW, 50.2617 trillion KRW, and 49.7718 trillion KRW, respectively. The gap between 3rd and 4th place is only 222.1 billion KRW, and between 4th and 5th place is 489.9 billion KRW, meaning rankings can easily change depending on stock price fluctuations. On the KOSDAQ, HL Biotech, Alteogen, and Kakao Games all have market capitalizations in the 5 trillion KRW range, with small differences. HL Biotech has 5.7288 trillion KRW, Alteogen 5.6459 trillion KRW, and Kakao Games 5.4025 trillion KRW.

Lee Jinwoo, a researcher at Meritz Securities, said, "In the short term, the stock market may continue to experience a volatile phase as it resolves concentration and overheating," adding, "It is unlikely to threaten the trend of a bull market."

Despite the recent sharp decline in U.S. tech stocks and the sluggish performance of BBIG in the domestic market, a strong rally is expected after the adjustment. Shin Seungjin, a researcher at Samsung Securities, said, "Although there are negative factors surrounding the leading stocks such as the U.S. tech stock plunge, Tesla Battery Day uncertainties, and regulatory issues on internet companies, the core of this week's leading stock cycle is the overwhelming growth momentum proven during the COVID-19 phase," adding, "After short-term negative factors are resolved, leading stocks are likely to continue their rally, and this adjustment period is an opportunity to buy leading stocks."