Growth Stocks Fall While Energy and Telecom Rise... Market Cap Rankings Shift in a Downturn

On the 17th, amid the impact of a sharp decline in global stock markets, the KOSPI index fell below the 2400 level briefly in early trading. Dealers are working in the Hana Bank dealing room in Euljiro, Seoul. The intraday break below 2400 on the KOSPI is the first in about 1 year and 7 months since November 5, 2020 (2370.85). Photo by Moon Honam munonam@

[Asia Economy Reporter Lee Myunghwan] As the domestic stock market faced a downturn in the first half of this year, the market capitalization rankings of top stocks showed sectoral shifts. While the market cap rankings of growth stocks, including newly listed companies, slipped, stocks in energy and telecommunications sectors saw their rankings rise.

According to the Korea Exchange on the 24th, based on the closing prices on the 22nd, the most notable declines in the top 50 KOSPI market capitalization rankings this year were seen in Kakaopay and HYBE. Kakaopay dropped 28 places from 15th to 43rd, and HYBE fell from 27th to 48th. Kakaobank (11→21), SK Bioscience (23→36), and NCSoft (25→44) also saw significant declines in market cap rankings. Within the top 10, major tech stocks such as Naver (3→6) and Kakao (6→11) experienced ranking drops.

The market cap rankings of growth stocks like platforms, e-commerce, and fintech, which surged during the post-COVID-19 market rally, collectively plummeted as global tightening measures worsened investor sentiment.

Only six companies within the top 50 increased their market cap compared to the start of the year: Doosan Enerbility, KT&G, Hyundai Heavy Industries, S-Oil, KT, and Hyundai Glovis. Among these, Hyundai Heavy Industries (49→31) and KT (50→37) showed notable gains. Hyundai Heavy Industries rose due to increased European demand for liquefied natural gas (LNG) amid the Russia-Ukraine war. KT's market cap ranking jumped as its core telecommunications business posted strong results and its new business models in media and content were re-evaluated.

Market analysts advised a cautious approach toward growth stocks for the time being. Samsung Securities researcher Seo Jeonghoon said, "After an overall oversold rebound, a thorough check of fundamentals is ultimately necessary," adding, "It is still appropriate to maintain a conservative view on growth stock types."

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