Hyundai Motor Falls to 9th in Market Cap... Kia Motors and Mobis Also Plunge

[Asia Economy Reporter Song Hwajeong] Hyundai Motor's stock price fell to the 60,000 KRW range, pushing its market capitalization ranking down to 9th place. Kia Motors and Hyundai Mobis also continued to experience sharp declines.

On the 19th, Hyundai Motor closed at 65,900 KRW, down 10.34% (7,600 KRW) from the previous day. This marked the 10th consecutive trading day of decline, with Hyundai Motor's stock price dropping 41.93% over ten days. Due to the continuous sharp fall, its market cap ranking slipped to 9th place. Hyundai Motor's market capitalization has evaporated by more than 10 trillion KRW over the past ten days.

Kia Motors and Hyundai Mobis also continued their steep declines. Kia Motors closed at 22,550 KRW, down 10.87% for the day, while Hyundai Mobis ended at 129,000 KRW, down 8.51%.

Joo Suhong, a researcher at NH Investment & Securities, stated, "Following the impact of the novel coronavirus infection (COVID-19), concerns over weak demand and the deterioration of supply chain stability have intensified the decline in global automobile companies' stock prices. Recently, the sharp drop in oil prices and the possibility of a stronger dollar have increased worries about automobile demand in emerging markets. Additionally, as the impact of COVID-19 expands to the US and Europe, the predictability of future outcomes is decreasing, which is the biggest uncertainty factor from a stock price perspective."

It is expected that earnings will inevitably slow down until the second quarter. Lim Eunyeong, a researcher at Samsung Securities, said, "Although earnings decline is unavoidable until the second quarter, this has already been sufficiently reflected in valuations. The recovery of demand in China and Korea in March will provide a basis for demand recovery in the second half of this year."

This content was produced with the assistance of AI translation services.