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Hyundai Motor's market cap hits 8-year low

All Headlines 08:35 July 05, 2018

SEOUL, July 5 (Yonhap) -- South Korea's top automaker Hyundai Motor Co. has seen its market capitalization touch an eight-year low as slumping global sales pound its share price, data showed Thursday.

Shares of Hyundai Motor closed at 119,500 won (US$107) on Wednesday, the lowest closing price since April 19, 2010, according to the data from the Korea Exchange.

Hyundai Motor's market cap stood at 26.9 trillion won ($24.1 billion), ranking sixth among the companies traded on South Korea's main stock market.

Tech behemoth Samsung Electronics Co. posted the largest market value of 297 trillion won, trailed by chip giant SK hynix Inc. with 62 trillion won, biopharmaceutical firm Celltrion Inc. with 37 trillion won, biopharmaceutical maker Samsung BioLogics Co. with 28 trillion won and top steelmaker POSCO with 27 trillion won.

Hyundai Motor's ranking marks a sharp departure from years ago, when the carmaker was the second-biggest-cap company on the main bourse after Samsung Electronics.

This photo provided by Hyundai Motor Co. on June 20, 2018, shows its high-end Veloster N hatchback. (Yonhap)

Cited as the main culprit for Hyundai Motor's market-cap ranking is a tumble in its share price stemming from flagging sales abroad.

Share prices of Hyundai Motor have fallen 23.4 percent this year, with its market value dropping by as much as 9.3 trillion won from its yearly high recorded on April 25.

Hyundai Motor suffered an earnings shock in the first quarter of this year, and local securities companies have revised down their estimates for its second-quarter earnings.

According to market researcher FnGuide Inc., local brokerages' consensus forecast of Hyundai Motor's operating income for the April-June period came to 1 trillion won as of end-June, down a whopping 21.5 percent from an estimated three months earlier.

"Sales of Kia Motors Corp.'s Sorento SUV jumped 13.7 percent in June from the previous month, but Hyundai Motor saw sales of its flagship Santa Fe SUV plunge 14.9 percent," said Lee Jae-il of Eugene Investment & Securities Co. "The effect from the rollout of an upgraded Santa Fe model is dying away faster than expected."
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