Samsung Electronics' Sharp Drop Sends Group Stocks Tumbling, KOSPI Falls Below 6,700 [Financial News Closing Market Report]

[Financial News] The KOSPI closed without holding the 6,700 level, dragged down by a sharp selloff in Samsung Group stocks.
On the 24th, the KOSPI finished at 6,696.96, down 215.99 points, or 3.12%, from the previous trading day. It opened at 6,881.07, down 31.88 points, or 0.46%, from the previous session, and then widened its losses throughout the day.
Foreign investors and institutions net sold 343.5 billion won and 126.7 billion won, respectively. Retail investors, meanwhile, net bought 305.98 billion won on their own.
Samsung Electronics, the market's largest company by market capitalization, dragged the index lower after plunging 8.70%, despite unveiling an unprecedented shareholder return plan.
Earlier, Samsung Electronics held a board meeting on the 21st and approved a plan to carry out shareholder returns worth 90 trillion won to 110 trillion won this year. That is more than five times the company's previous annual record. However, the plan fell short of market expectations, and analysts believe sell-on pressure emerged as investors took profits after the news.
Samsung Group stocks that hold shares in Samsung Electronics also weakened across the board. Samsung Life Insurance fell 13.09%, and Samsung C&T Corporation dropped 7.84%.
Kim Ki-baek, a researcher at Shinhan Investment & Securities, said, "Samsung Electronics announced shareholder returns of 90 trillion won to 110 trillion won, including 30 trillion won in special dividends, but the plan did not exceed market expectations, so the mood is turning toward viewing it as a news-driven fade." He added, "Rotation is taking place into defense and cosmetics stocks, among others, excluding Samsung Group stocks."
There are also forecasts that the scale of Samsung Electronics' treasury share cancellation could be limited under the Act on the Structural Improvement of the Financial Industry. Kim Soo-hyun, head of the research center at DS Investment & Securities Co., Ltd., said, "Samsung Life Insurance and Samsung Fire & Marine Insurance hold 10% of Samsung Electronics' common shares, so if additional common shares are canceled, their stakes would exceed the 10% cap under the Act on the Structural Improvement of the Financial Industry." He added, "For the shareholder returns to be executed early next year, I estimate treasury share buybacks and cancellations at about 10 trillion won to 20 trillion won, and dividends at about 50 trillion won to 60 trillion won."
SK hynix, which opened higher on the day, reversed course intraday and closed down 3.41%. SK Square (-4.19%), Hyundai Motor Company (-0.24%), and KB Financial Group (-0.73%) also weakened. By contrast, LG Energy Solution (5.39%), Samsung Biologics (1.42%), and Mobile Tactical Cannon program (1.84%) posted gains.
By sector, metals, transportation and warehousing, chemicals, entertainment and culture, pharmaceuticals, nonmetals, and medical and precision instruments rose. Insurance, electricity and electronics, distribution, manufacturing finance, and securities fell.
Meanwhile, the KOSDAQ closed at 813.34, up 11.40 points, or 1.42%, from the previous session.

[email protected] Seo Min-ji Reporter