Published : 2010-03-30 14:27
Updated : 2010-03-30 14:27
The Korean stock market is recovering faster than most of its advanced peers, driven by the faster-than-expected recovery of the Korean economy and local firms` solid performances, data showed yesterday.
Most of the country`s top 10 conglomerates also saw their market value sharply rise this year, according to other data.
Out of the 30 OECD nations, Korea and three other countries saw their shares return to pre-crisis levels, while the other 26 countries still suffered from sharp declines in their stock markets, according to data from the Korea Exchange.
Korea ranked second in terms of stock market rises among 30 OECD member states, with its main KOSPI gaining 7.98 percent as of the end of August from the same period last year, two weeks before the collapse of Lehman Brothers sparked the global financial crisis.
Turkey topped the list with its shares jumping 16.83 percent during the period. Mexico saw its shares climb 6.99 percent, while Sweden posted a 3.9 percent rise in its shares.
The stock markets of the other 26 countries were not back to pre-Lehman levels.
Iceland posted the biggest drop in its shares, with its stock market slumping 87.43 percent. Luxemburg`s stock market plunged 44.22 percent, while Slovak shares dived 30.89 percent.
Major economics also saw their stock markets reeling from the Lehman shock.
Japanese shares slid 19.74 percent, while U.S. shares fell 17.74 percent. Germany also reported a 14.91 percent drop in its shares, while British shares dipped 12.91 percent and French shares skidded 18.5 percent.
"Shares of advanced countries, which are the epicenter of the financial crisis, have not escaped the shadow of the crisis. Korea`s fast recovery is attributed to appropriate policy responses and local IT and auto firms that enhanced their competitiveness in the process of global restructuring," said Hwang Chang-joong, an analyst at Woori Investment & Securities.
He added, however, challenges remain for the Korean economy, saying Korea needed an exit strategy that would achieve full-blown economic recovery.
Data showed yesterday that nine out of the country`s top 10 conglomerates saw their market capitalization rise as of Sept. 4, from the end of last year.
Affiliates of Samsung Group, the top conglomerate, saw their market value skyrocket 62.59 percent to 191.3 trillion won, from last year`s 117 trillion won.
Subsidiaries of LG Group ranked second in terms of market cap, with their market value jumping 78.9 percent to 74.9 trillion won. Trailing LG was Hyundai-Kia Automotive Group, whose market cap surged 153.01 percent to 58.6 trillion won. POSCO`s market value soared 21.52 percent to 41.1 trillion won, while SK Group`s market cap increased 7.66 percent to 37.3 trillion won.
Hyundai Heavy Industries was the only conglomerate whose market cap fell during the period.
By affiliates, LG Innotek, an electronic components unit of LG Group, reported the largest increase in market value, with its market cap jumping 306.67 percent. Ace DigiTech and Samsung Electro-Mechanics, both of which are affiliates of Samsung Group, also posted rises of 273.33 percent and 240.24 percent in market cap, respectively.
By Jin Hyun-joo