Over half of South Korean listed companies’ shares retreated from late 2007.

February 25, 2014 Leave a comment

55% of S. Korea listed firm shares fall from 7 years ago

2014.02.17 17:36:22

Over half of South Korean listed companies’ shares retreated from late 2007.
Shares of 55 percent, or 719 of 1,319 domestic listed firms closed lower on February 14, 2014 compared to their closing levels in late 2007, said FnGuide and E-Trade Securities Korea that conducted and released the comparison Monday commissioned by Maeil Business Newspaper. During the same period, 45 percent of them, or 600 listed firms, saw their shares advance.
Over the corresponding period, shares of 75 percent, or 338 of 500 US companies listed on the S&P 500, gained, and 57 percent, or 408 of 711 companies listed on the Taiwan Capitalization Weighted Stock Index (TAIEX) climbed as well. In comparison, the Korean stock market is badly bearish. 
The KOSPI rose 2.2 percent from 1,897.13 at the end of 2007 to 1,940.28 at the closing Friday, yet more than half of listed firms’ shares were among decliners, because with the exception of Samsung Electronics, Hyundai Motor, and some other bellwether stocks, the remaining large and small and mid-sized shares underperformed in relative terms.
This indicates Korean companies’ shares are undervalued. Over the cited period, their operating profit soared over 60 percent, but this did not lead to share price gains.
In other words, some leading conglomerates such as Samsung Electronics and Hyundai Motor are gaining a larger portion of the domestic stock market, while most of the remaining listed companies’ shares continue to pull back, further dragging down the Korean stock market.

Filed under Macro Trends

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