Sharp Blow to Large Secondary Battery Stocks Amid Price Slump
SK Hynix Valuation Increases by 2.1 Trillion Won
This year, the stock valuation of the National Pension Service (NPS) decreased by approximately 1.6555 trillion KRW due to the decline in stock prices of the top five secondary battery stocks on the Korea Composite Stock Price Index (KOSPI), including LG Energy Solution [373220].
On the 21st, financial information company FnGuide [064850] announced that as of the 17th, the total stock valuation of 276 listed companies in which the NPS holds a large stake of 5% or more and is subject to disclosure amounted to 138.6238 trillion KRW. Compared to the end of last year (December 29), when there were 282 companies with a valuation of 140.2793 trillion KRW, the number of stocks decreased by six, and the valuation also dropped by 1.6555 trillion KRW (1.2%). While 102 stocks saw an increase in valuation due to rising stock prices or additional share purchases, 191 stocks experienced a decrease, which was significantly higher.
The main reason for the decrease in the NPS's stock valuation is the poor performance of large secondary battery stocks on the KOSPI. Looking at the valuation decline by stock, LG Energy Solution (-852.5 billion KRW), POSCO Holdings [005490] (-729 billion KRW), LG Chem [051910] (-641.6 billion KRW), POSCO Future M (-474.4 billion KRW), and Samsung SDI [006400] (-466.3 billion KRW) ranked from second to sixth. The NPS's shareholding ratio in these stocks has remained the same from the end of last year to the present. Therefore, the decline in stock prices was the cause of the drop in stock valuation. Since the beginning of the year, LG Energy Solution's stock price fell by 14.7%, POSCO Holdings by 25.7%, LG Chem by 24.7%, POSCO Future M by 30.6%, and Samsung SDI by 18.2% respectively.
The stock with the largest valuation decrease was NAVER [035420]. During this period, NAVER's valuation dropped by 995.6 billion KRW. However, the NPS's shareholding ratio in NAVER also decreased by 1.11 percentage points during the same period. On the other hand, the stock with the largest increase in valuation among the NPS holdings in the first quarter was SK Hynix. SK Hynix's valuation increased by 2.1399 trillion KRW compared to the end of last year. The shareholding ratio remained the same at 7.9%. SK Hynix's stock price rose by 26.3% since the beginning of the year.
On the 18th, the KOSPI index is displayed at the Korea Exchange in Yeouido, Seoul, where the KOSPI started higher and soared past the 2600 mark. Photo by Jo Yongjun jun21@
Additionally, the valuations of Samsung Biologics [207940] (657.8 billion KRW), HMM [011200] (506.5 billion KRW), Hyundai Motor [005380] (498.9 billion KRW), Hanmi Semiconductor [042700] (471.3 billion KRW), Hanwha Aerospace [012450] (444.4 billion KRW), HD Hyundai Electric [267260] (388.6 billion KRW), and Kia [000270] (377.8 billion KRW) also increased. The NPS increased its shareholding in Samsung Biologics and Hyundai Motor by 1.08 and 0.08 percentage points respectively, and additionally purchased 0.48 percentage points in Hanwha Aerospace. Although HD Hyundai Electric's shareholding decreased by 2.55 percentage points, the rise in stock price offset the decrease in shares.
In the first quarter of this year, the KOSPI-listed companies newly included in the NPS's portfolio of stocks with 5% or more large shareholdings were HMM, POSCO International, L&F [066970], Daou Technology [023590], Kyungdong Navien [009450], KC Tech [281820], and Jahwa Electronics [033240]. Among KOSDAQ stocks, Daejoo Electronic Materials [078600], ABL Bio [298380], Mro [058970], and Chips&Media [094360] were added to the list of stocks with 5% or more NPS shareholdings. Conversely, the NPS's shareholding ratios in LG Display, Ssangyong C&E, SK Gas [018670], EO Technics [039030], AfreecaTV [067160], Simtek [222800], and YG Entertainment [122870] fell below 5%.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
