Low-PBR stocks rally on first day of announcement; Hyundai Steel gains nearly 10% [Stock NOW]

[Financial News] Hyundai Steel, E-Mart and Lotte Shopping were among several stocks on the Korea Exchange’s low price-to-book ratio (PBR) list to rise together in early trading on the 2nd, when the exchange began announcing companies with low PBRs. The gains appear to reflect expectations that the announcement will lead to efforts to enhance corporate value.
As of 9:25 a.m. that day, Hyundai Steel was trading on the securities market at 28,400 won, up 2,550 won (9.86%) from the previous trading day. Lotte Shopping was up 3,300 won (4.03%) at 85,200 won, while E-Mart was up 2,700 won (3.91%) at 71,800 won. Hanwha Life Insurance was also trading at 4,180 won, up 65 won (1.58%).
The exchange announced for the first time that day a total of 151 companies as low-PBR companies, including 96 listed on the securities market and 55 on the KOSDAQ market. The measure is intended to encourage companies that have been undervalued for a long time to voluntarily take steps to enhance their corporate value.
The companies eligible for announcement are those whose PBRs by market and industry fall in the bottom 25% of the securities market or the bottom 10% of the KOSDAQ market over a cumulative three-year period.
The selected companies will be listed on the Value-up page of KIND, the Korea Exchange’s listing disclosure system, and a “Low PBR” tag will also appear on securities firms’ mobile trading systems (MTS) and home trading systems (HTS).
Next year, the exchange also plans to provide the 151 companies slated for announcement with one-on-one tailored consulting to analyze the causes of their low PBRs, set targets and develop improvement plans.
[email protected] Joo Won-gyu Reporter