Samsung Shareholder-Return Disappointment Sends Kospi Down Nearly 3% Intraday
Summary
- The Kospi and Kosdaq were in a sharp slide, falling 2.74% and 3.68%, respectively.
- Samsung Electronics fell 5.06% on disappointment over its shareholder-return plan, while SK Hynix and SK Square posted gains.
- LG Energy Solution plunged 10.01% after disclosure of a 2.5 trillion won stake sale, highlighting increased volatility in major large-cap stocks.
Forecast Trend Report by Period
The Kospi climbed above 6,100 early in the session before reversing course and falling nearly 3%. The Kosdaq was also down more than 3% as Samsung Electronics slid more than 5% on disappointment over its shareholder-return plan.
As of 10:40 a.m. on October 29, the Kospi was down 164.83 points, or 2.74%, at 5,847.61 from the previous session. The benchmark opened higher and rose to as much as 6,100.11 in early trading, but selling intensified after it hit an intraday high around 9:48 a.m.
On the Kospi, retail and institutional investors were net sellers of 121.9 billion won and 353.6 billion won, respectively. Foreign investors were net buyers of 397.2 billion won.
Samsung Electronics fell 5.06% to 229,750 won. Market participants said disappointment with the shareholder-return plan announced on the company’s earnings conference call weighed on the stock. Samsung unveiled 30 trillion won in cash dividends, but said it would decide in January on the rest of its shareholder-return measures, including additional share buybacks and cancellations.
SK Hynix, by contrast, rose 0.54% to 1,495,000 won, supported by record earnings and a long-term supply contract. SK Square also gained 1.52% on expectations for dividend income and a re-rating of its stake value.
LG Energy Solution plunged 10.01% after its largest shareholder, LG Chem, disclosed a 2.5 trillion won stake sale. Samsung Electro-Mechanics fell 6.97%, Hyundai Motor dropped 3.04%, and Samsung Life Insurance lost 2.16%.
At the same time, the Kosdaq fell 28.37 points, or 3.68%, to 742.91 from the previous session. Retail investors were net buyers of 134.4 billion won, while foreign and institutional investors were net sellers of 80.8 billion won and 39.5 billion won, respectively.
Large-cap Kosdaq stocks also moved lower. EcoPro and EcoPro BM fell 5.48% and 6.77%, respectively, while Simtech dropped 6.04% and Rainbow Robotics lost 7.17%.
In Seoul foreign-exchange trading, the won was at 1,332.50 per dollar, up 9.50 won from the previous session.
YM Lee
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