Market cap of top 30 business groups’ affiliates rises nearly 20 pct
SEOUL-- South Korea's top 30 conglomerates have seen their listed subsidiaries' stock market capitalization jump nearly 20 percent this year from a year earlier on a turnaround in corporate earnings, market data showed Sunday.
The combined market cap of 176 listed firms owned by the 30 largest business groups reached 969.9 trillion won (US$853.8 billion) as of Friday, up 18.7 percent from 817.3 trillion won tallied on Jan. 1 last year, according to the data compiled by industry tracker CEO Score.
Over the same period, the benchmark KOSPI gained 10.4 percent.
The sharp increase in the market cap has been led by a 21.6 percent on-year surge in the listed companies' combined operating profit worth 102.3 trillion won last year and a 4.2 percent gain in combined sales.
Doosan Group, the 12th biggest group, made the biggest gain as its subsidiaries' market cap shot up 84.4 percent during the period thanks to a nearly 2,000 percent upswing in operating profit, while the ninth-largest Hyundai Heavy Industries Co. and sixth-largest POSCO saw their figures soar 69.9 percent and 56.3 percent, respectively.
Samsung Group, the country's largest conglomerate, and the third-largest SK Group also posted double-digit growth in their stock market capitalization.
However, the market cap of nine listed affiliates of the 14th-largest CJ Group, a food and entertainment conglomerate, fell 16.2 percent over the January-April period, despite a 1.4 percent rise in operating profit and a 12.6 percent jump in sales.
Source: Yonhap News Agency