The Korea Herald

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Most units of top 10 groups saw losses on local bourse in 2014

By KH디지털2

Published : Dec. 3, 2014 - 11:17

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Most listed companies affiliated with South Korea's top 10 conglomerates have suffered losses on the Seoul bourse this year due to the global economic slowdown and the strengthening of the South Korean won, with listed subsidiaries of CJ and SK being the lone gainers, data showed Wednesday. 

The data was compiled by Daeshin Securities Co., one of the leading local brokers, based on its tallies of the companies'

market capitalization between the end of last year and Tuesday. 

Manufacturers in the shipbuilding, chemical and refinery sectors -- the nation's traditional economic drivers -- were hit hard this year due to weak global demand and tougher competition with Chinese rivals, while companies more reliant on domestic consumption fared better in the stock market than export-oriented companies. 

The combined market value of companies affiliated with CJ Group jumped 21.49 percent as of Monday compared to the beginning of this year, becoming the biggest gainer among the top 10 business groups, 

CJ Korea Express Co., a logistics unit of CJ, soared 98.5 percent, while CJ CheilJedang Co., CJ's food and beverage unit as well as an entertainment arm jumped more than 20 percent on hopes of economic recovery after the government announced a series of stimulus measures. 

Units of SK Group, the nation's second-largest conglomerate, came in second with a 13.05 percent surge in their combined market value on the Seoul bourse during the period. 

SK Telecom Co., the nation's largest mobile carrier, and the group's key IT service provider showed a double-digit rise in its stock price. SK hynix Co., the world's second-largest chipmaker, had a strong year on a brisk industry outlook, soaring 32.87 percent. 

In contrast, Hyundai Heavy Industries Co., the world's largest shipbuilder, and its two affiliates -- Hyundai Mipo Dockyard Co.

and Hyundai Samho Heavy Industries Co. -- lost more than half of their market capitalization after posting huge operating losses this year. 

The market cap of subsidiaries of Lotte Group, whose businesses range from retail and food to chemicals, slipped 21.88 percent, while that of Hyundai Motor Group's units, which include Hyundai Motor Co. and Kia Motors Corp., fell 14.17 percent, data showed. 

Samsung Group subsidiaries' market value also declined 3.86 percent because its flagship unit Samsung Electronics Co., the world's top handset maker, suffered a slump due to sluggish smartphone sales. The combined market value excludes Samsung SDS Co., a key IT unit that was listed on the Seoul bourse in early November. (Yonhap)