Profit-taking follows Samsung Electronics’ record results ... KOSPI falls to the 6,600 level

[Financial News] South Korea’s stock market fell sharply despite Samsung Electronics’ record quarterly results. Foreign and institutional investors net sold more than 3.3 trillion won, sending the KOSPI down more than 2%; Samsung Electronics and SK hynix also fell in tandem.
According to the Korea Exchange, the KOSPI closed at 6,625.93 on the 8th, down 177.97 points (2.62%) from the previous trading day.
Heavy selling by foreign and institutional investors contributed to the index’s decline. Individual investors absorbed the shares, making net purchases worth 2.55 trillion won, but foreign investors and institutions net sold 2.0227 trillion won and 1.294 trillion won, respectively. Their combined net sales totaled 3.3167 trillion won.
The preliminary results Samsung Electronics released that day were the highest in the company’s history. Consolidated revenue for the third quarter of this year (July–September) came to 195 trillion won, while operating profit totaled 107.4 trillion won. Compared with the same period a year earlier, revenue rose 126.6% and operating profit increased 782.5%.
Despite the earnings announcement, Samsung Electronics shares closed at 262,000 won, down 2.42% from the previous trading day. SK hynix also fell 2.44%, closing at 1,681,000 won. Samsung Electronics preferred shares dropped 2.02%, SK Square fell 8.06%, and Samsung Electro-Mechanics declined 3.62%, leaving semiconductor-related stocks broadly weaker.
The declines extended to other companies with large market capitalizations. Hyundai Motor fell 3.42% and KB Financial Group dropped 3.38%, while Samsung Biologics and Samsung Life Insurance lost 4.54% and 4.27%, respectively. LG Energy Solution, by contrast, gained 2.56%.
Analysts said Samsung Electronics shares fell on profit-taking despite the company reporting results above market expectations. “Despite Samsung Electronics reporting results that exceeded market expectations, sell-on (profit-taking) selling emerged, driving the market lower,” said Lee Kyung-min, an analyst at Daishin Securities. “With interest rates and oil prices weighing on the market, Samsung Electronics’ earnings announcement had the stock market looking for a turnaround in sentiment, but the fall in its share price dampened investor sentiment,” he said.
The KOSDAQ also closed lower. The index ended at 892.27, down 6.16 points (0.69%) from the previous trading day. Individual investors and foreign investors net bought 46 billion won and 47.4 billion won, respectively, while institutions net sold 85.4 billion won.
[email protected] Han Seung-gon Reporter