LG Energy Solution (373220.KS) overtook Hyundai Motor (005380.KS) in market capitalization ranking as secondary battery stocks surged on expectations of a large-scale order from Mercedes-Benz.
LG Energy Solution closed at 478,000 won on Monday, up 11.42 percent from the previous trading day, according to the Korea Exchange. Its market capitalization rose to about 111.85 trillion won, narrowly surpassing Hyundai Motor's approximately 111.80 trillion won to rank third by market cap, excluding Samsung Electronics preferred shares.
The secondary battery sector broadly rallied on the day. Samsung SDI (006400.KS) surged 19.89 percent to close at 645,000 won, after reports the previous day raised the possibility of supplying trillions of won worth of EV batteries to Germany's Mercedes-Benz. The stock hit an intraday high of 648,000 won, setting a 52-week high.
SK Innovation (096770.KS), which holds a 100 percent stake in SK On, also closed up 3.65 percent at 133,500 won. Ecopro BM (247540.KQ) and Ecopro (086520.KQ), which count Samsung SDI and SK On among their major customers, rose 5.00 percent and 5.21 percent, respectively.
The KOSPI also set a new all-time high, lifted by the dual strength of semiconductor and secondary battery stocks. The benchmark index closed at 6,388.47, up 169.38 points or 2.72 percent from the previous session, setting record highs on both closing and intraday bases. Total market capitalization also reached an all-time high of 5,236 trillion won.
Despite geopolitical risks in the Middle East, the KOSPI posted a 26.4 percent gain in April, the highest among the Group of 20 (G20) nations.
The rally is linked to an inflow of foreign capital. After recording net selling of 21.1 trillion won in February and 35.9 trillion won in March, foreign investors turned to net buying of about 5.4 trillion won in April. In particular, they net-purchased approximately 5.6 trillion won in electrical and electronics stocks this month, alongside buying in chemicals (1.1 trillion won) and machinery and equipment (500 billion won).
Market analysts interpret the rally as a signal of a shift in industry conditions. "Reports that Samsung SDI may supply NCM high-nickel batteries for Mercedes-Benz electric vehicles stimulated investor sentiment," said Kim Kwang-sik, an analyst at Kyobo Securities. "If the high oil price environment persists, preference for electric vehicles will rise."
