Market Capitalization Leaders Experience Slow Shift Amid Weakness in Secondary Battery Sector

Position Shift in KOSPI with Hyundai Motor and Kia's Relative Outperformance
Robot, Entertainment, and Gaming Stocks Compete for 6th to 10th Places in KOSDAQ

This year, the most talked-about stocks, secondary battery stocks, are undergoing corrections, causing significant shifts in the rankings of top market capitalization stocks. In the KOSPI, the remarkable rise of automobile stocks, which had been overshadowed by secondary battery stocks, stands out. In the KOSDAQ, robot stocks, entertainment stocks, and game stocks are challenging the dominance of secondary battery stocks. Intense competition for the top market capitalization spots is expected for the time being.

According to the Korea Exchange, on the 12th, Hyundai Motor surpassed Samsung SDI to claim the 7th spot in KOSPI market capitalization. During the trading session, it even overtook LG Chem, seemingly securing 6th place, but ultimately conceded the position back to LG Chem and settled at 7th. Kia rose to 10th place, overtaking POSCO Future M. Until early July, Kia was ranked 8th, but by mid-July, amid the surge in secondary battery stocks, it was overtaken by POSCO Holdings and POSCO Future M, falling out of the top 10.

Hyundai Motor and Kia, whose rankings had dropped due to the surge in secondary battery stocks, appear to be regaining their positions thanks to the slump in secondary battery stocks. Kia's stock price fell by more than 3% compared to a month ago, but POSCO Future M dropped nearly 10% during the same period, resulting in Kia's rise in ranking. Hyundai Motor's stock price also declined by over 2% in the same period. However, Samsung SDI experienced a larger drop, enabling Hyundai Motor to surpass it. Samsung SDI's stock price has fallen by more than 11% over the past month.

The competition for market capitalization rankings between 6th place LG Chem and 7th place Hyundai Motor is expected to be fierce for the time being. Based on the closing prices that day, LG Chem's market capitalization was KRW 39.4611 trillion, and Hyundai Motor's was KRW 39.3872 trillion, with a gap of only KRW 73.9 billion. During the trading session, the rankings of the two stocks fluctuated back and forth.

In the KOSDAQ market, secondary battery stocks still dominate the top market capitalization rankings. Meanwhile, entertainment stocks, game stocks, robot stocks, and bio stocks are competing for positions between 6th and 10th place. JYP Ent., which was 6th at the beginning of the month, dropped one rank, allowing HLB, previously 7th, to rise to 6th. SM, ranked 8th, fell to 9th after yielding its spot to Rainbow Robotics, which was 10th. With the rise of Rainbow Robotics, a leading robot stock, Pearl Abyss also dropped from 9th to 10th. The rankings from 6th to 10th are expected to be influenced by the stock price movements of Rainbow Robotics for the time being.

Amid the recent strength of robot stocks, Rainbow Robotics climbed to 6th place the previous day but fell back to 8th after its stock price dropped more than 7% that day, indicating a volatile battle for ranks 6 through 10. Rainbow Robotics' stock price has risen 29.24% since the beginning of this month. The recent IPO of Doosan Robotics has boosted robot stocks, and the upward trend is expected to continue until Doosan Robotics' listing next month. There is a high probability that Rainbow Robotics' market capitalization ranking will rise further.

The top 1 to 5 rankings in KOSDAQ market capitalization have seen little change, but the market capitalization of secondary battery stocks has significantly decreased. EcoPro, which was 1st at the beginning of the month, lost KRW 5.408 trillion in market capitalization, surrendering the top spot back to EcoPro BM. EcoPro BM's market capitalization decreased by KRW 4.2541 trillion compared to early this month. L&F's market capitalization fell by KRW 495.6 billion. In contrast, POSCO DX's market capitalization increased by more than KRW 800 billion during the same period, fueled by expectations of its transfer listing to the KOSPI market. With the market capitalization of leading secondary battery stocks dropping by about KRW 10 trillion, the total market capitalization of the KOSDAQ market also decreased by more than KRW 9.8 trillion.

As the correction of secondary battery stocks, which led the market this year, continues, no clear alternative leading stocks have yet emerged. Accordingly, the market capitalization rankings are expected to keep changing. Additionally, many top KOSDAQ stocks may exit the market, causing further volatility in rankings. POSCO DX and L&F are pursuing transfer listings to the KOSPI market, and Celltrion Healthcare is scheduled to be merged into Celltrion.

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