Safety woes cut Toyota market cap by US$35 bln, push up Hyundai, Kia

SEOUL, Feb. 5 (Yonhap) -- Due to safety woes Japan's top automaker Toyota Motor Corp. has lost nearly US$35 billion in market capitalization over the past 10 trading sessions, but its misfortune has helped South Korean and U.S. automakers gain ground, brokerage data showed Friday.

According to the data by Samsung Securities Co., shares of Toyota dived 21.7
percent as of Thursday from Jan. 22, erasing a combined $34.7 billion in its
market capitalization to $125.1 billion.
The top auto company in Japan and the No. 2 player in the U.S. recently said it
will recall some of its best-selling vehicles due to faulty accelerator pedals
and extended its withdrawal to Europe and China.
The safety concerns battering the Japanese carmaker gave rise to shares of Korean
and American rivals as investors bet they would grab a larger share of the U.S.
auto market.
Top South Korean automaker Hyundai Motor Co.'s stocks advanced 8.3 percent and
smaller affiliate Kia Motors rose 5.9 percent during the same 10 sessions.
The gains took the combined market capitalization of the two firms to $29.3
billion as of Thursday, up $1.8 billion.
Shares of Ford Motor Co., the leading U.S. auto manufacturer, gained around 4.1
percent, with its market capitalization growing $1.5 billion to $38.5 billion.
"Toyota shares are expected to struggle for an extended period because of the
vehicle defects and its tepid responses in the recall issue despite the fact that
it has established a firm brand value with assuring quality in the North American
market," said Yang Dae-yong, an analyst at Samsung Securities.
The misfortune of Toyota is predicted to benefit local carmakers, he said, adding
shares of Hyundai and Kia are likely to gather ground due to their aggressive
marketing drives.
pbr@yna.co.kr