As the domestic stock market, which had been dampened by the Middle East war, shows signs of recovery, the so-called "1 trillion club," made up of corporations with a market capitalization of 1 trillion won or more, is expanding again.
According to the Korea Exchange (KRX) on the 19th, as of the 17th, there were a total of 377 listed companies with a market cap of 1 trillion won or more. Of these, KOSPI had 253 and KOSDAQ had 124. There were 76 corporations with a market cap of 10 trillion won or more.
Earlier, the domestic stock market suffered a sharp decline due to the initial shock of the Iran war. In particular, on Mar. 4, the day called "Black Wednesday," the KOSPI index plunged 12%, reducing the number of 1 trillion club corporations to 331 and the 10 trillion club to 72.
However, as the market has since shown a recovery trend, the current number of top market-cap stocks is close to the level at the end of February, just before the U.S. strike on Iran (377 at 1 trillion won or more, 78 at 10 trillion won or more). Investor sentiment also improved, with the KOSPI index settling at the 6,000 level on the 15th on hopes for an end to the war.
At the top of market capitalization, Samsung Electronics remains No. 1 at about 1,263 trillion won, followed by SK hynix (about 804 trillion won), Samsung Electronics preferred (about 118 trillion won), Hyundai Motor (about 110 trillion won), and LG Energy Solution (about 98 trillion won). SK Square, Samsung Biologics, and Hanwha Aerospace also ranked among the top.
Yuanta Securities Korea and HS Hyosung Advanced Materials have approached a market cap of 1 trillion won but have yet to cross the threshold. In contrast, JUNJIN Construction Robot newly entered the 1 trillion club on expectations of reconstruction benefits after the war, and Daewoo Engineering & Construction returned to the 10 trillion club for the first time in about 19 years.
Experts cite the return of foreign investors as the driver of the recent rebound. Lee Jae-won, an analyst at Yuanta Securities Korea, said, "This week, the return of foreign flows in the domestic stock market was clear, centered on large caps," and noted, "Many internal and external volatilities have eased, and exports and earnings—the fundamental engine of the domestic market—remain solid."