Market Cap Ranking Shakeup: Defense and Shipbuilding Rise, Finance Declines

Market Capitalization Rankings Continue to Shift Since the Start of the Year
Only Three of the Top 20 Stocks Have Maintained Their Positions
Defense and Shipbuilding Stocks Stand Out with Significant Rank Increases
Hanwha Aerospace Jumps 13 Spots Compared to the Beginning of the Year
Financial Stocks Decline Amid Concerns Over Weakened Value-Up Momentum

Since the beginning of the year, there have been significant shifts in the market capitalization rankings due to changes in leading stocks. The remarkable rise of defense industry and shipbuilding stocks, which have continued to show strong price performance this year, stands out. Meanwhile, financial stocks that climbed the ranks last year on the back of value-up efforts are experiencing a downturn this year. Secondary battery stocks have also continued their sluggish performance from last year, resulting in a continued decline in their rankings.

According to the Korea Exchange on the 6th, among the top 1 to 20 stocks by market capitalization on the KOSPI market, only three stocks have maintained their positions compared to the beginning of the year. These are the steadfast No. 1 and No. 2, Samsung Electronics and SK Hynix, and No. 5 Hyundai Motor. The rankings of the other 17 stocks have all changed.

The change in leading stocks has led to shifts in market capitalization rankings. The rise in rankings of shipbuilding and defense stocks, which have driven the KOSPI's upward trend this year, is particularly noticeable. Hanwha Aerospace, which has been hitting record highs day after day, jumped 13 places from 22nd at the start of the year to 9th. It reached an intraday high of 709,000 KRW yesterday, setting another all-time high. Hanwha Aerospace's stock price has risen more than 90% since the beginning of the year. Jang Nam-hyun, a researcher at Daol Investment & Securities, said, "Hanwha Aerospace's stock price surged significantly reflecting a Q4 earnings surprise last year," adding, "With a turnaround in earnings and a massive order pipeline derived from various export pamphlets, the order momentum is expected to continue."

Hanwha Ocean climbed from 34th to 12th since the start of the year. Hanwha Ocean has also been steadily reaching new highs this year, hitting an intraday record of 87,200 KRW on the 4th. HMM rose from 27th to 20th in the rankings.

Additionally, Naver and Kakao, considered beneficiaries of the deep-sea chip sector and showing gradual stock price recovery this year, also improved their rankings. Naver moved up one spot from 9th to 8th, and Kakao re-entered the top 20, rising from 21st to 19th.

Biotech stocks also performed well. Samsung Biologics overtook LG Energy Solution to claim 3rd place, and Celltrion surpassed Kia to take 6th place.

Financial stocks, which had climbed the market capitalization rankings last year on the back of value-up efforts, have struggled this year. KB Financial Group, the leading financial stock, dropped from 8th to 10th, and Shinhan Financial Group fell from 11th to 16th. Samsung Life Insurance and Samsung Fire & Marine Insurance slipped out of the top 20. Ji-young Kim, a researcher at Kyobo Securities, explained, "This year, due to domestic political uncertainties, concerns have arisen about the sustainability of banks' corporate value enhancement plans, i.e., value-up programs, which is believed to have led to the weak stock performance." Among financial stocks, Meritz Financial Group showed progress, rising from 15th to 13th since the start of the year.

Secondary battery stocks, which showed a decline in market capitalization rankings due to poor stock performance last year, continue to fall this year. LG Energy Solution dropped to 4th place, and POSCO Holdings fell from 13th to 15th.

Rankings are expected to continue shifting with stock price fluctuations. In particular, the battle for 3rd and 4th place is intense. Samsung Biologics first claimed 3rd place on the 7th of last month, but LG Energy Solution reclaimed 3rd place afterward, resulting in four rank changes between the two stocks last month alone. On the 4th of this month, Samsung Biologics regained 3rd place. The market capitalization gap between the two stocks is about 3.2 trillion KRW. The competition for 9th place between Hanwha Aerospace and KB Financial Group is also expected to continue, with a market capitalization gap of about 1.5 trillion KRW. Meritz Financial Group and Hyundai Mobis are competing for 13th place. Their rankings even switched during intraday trading yesterday. The market capitalization gap between these two stocks is only 21.4 billion KRW.