[Featured Stocks] Hyundai Motor and Kia "Simultaneously Hit 52-Week Lows"

[Asia Economy Reporter Lee Seon-ae] Hyundai Motor and Kia both hit 52-week lows during trading on the 8th. They have been continuously recording 52-week lows amid a recent daily decline. Concerns over local business due to economic sanctions on Russia are the main factors behind the stock price slump.

At 10:13 a.m. on the 8th, Hyundai Motor was trading at 169,500 KRW, up 0.89% from the previous day. Early in the session, it hit a new 52-week low of 163,500 KRW, down 2.68%, breaking the previous 52-week low of 165,500 KRW, before slightly recovering. Kia was trading at 70,500 KRW, down 0.84% (600 KRW). Early in the session, it dropped 3.09% to 68,900 KRW, breaking the previous 52-week low of 70,500 KRW, before slightly rising.

As the West increases the level of sanctions against Russia, investment sentiment toward domestic companies is weakening.

In particular, the automotive sector is under pressure on stock prices due to concerns over semiconductor supply shortages and an unfavorable environment for operations in Russia. Kia and Hyundai Motor hold the 2nd and 3rd largest market shares respectively in the Russian finished car market, and economic sanctions have increased uncertainty over future sales.

The United States, the European Union (EU), the United Kingdom, and others have announced the exclusion of certain Russian banks from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) payment network.

Im Eun-young, a researcher at Samsung Securities, stated, “With the U.S. and Europe deciding to exclude Russian banks from the international payment system, exports from Hyundai and Kia to Russia will be difficult for the time being,” adding, “The estimated maximum losses for Hyundai Motor and Kia are approximately 200 billion KRW and 2.5 trillion KRW, respectively.”

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