KOSPI slides 1.3% as Samsung's payout plan underwhelms investors
South Korea's KOSPI fell 1.31% as Samsung Electronics tumbled 6.31% on a smaller-than-expected shareholder return plan, while the won strengthened.
South Korean stocks opened the week with sharp losses, with the benchmark KOSPI dropping 1.31% to 6,822.66 by Monday afternoon trade. The decline was led by Samsung Electronics, which fell 6.31% after the chipmaker's shareholder return guidance for the year disappointed analysts.
Samsung had said last week that its shareholder returns could reach up to 110 trillion won (about $79.55 billion), a figure that market watchers viewed as smaller than anticipated. The disappointment weighed heavily on the index, though other major stocks offered some support.
SK Hynix rose 1.91%, while battery maker LG Energy Solution climbed 3.93%. Samsung SDI surged 8.58% following an announcement of a share sale plan by Samsung Display. POSCO Holdings added 5.65%, while Hyundai Motor and Kia Corp slipped 0.84% and 0.31%, respectively. Samsung BioLogics fell 0.26%.
Market breadth was positive, with 506 of the 901 traded issues advancing against 346 decliners. Foreign investors were net sellers, offloading shares worth 1.3 trillion won.
In currency markets, the Korean won strengthened 0.35% against the dollar, trading at 1,381.1 per dollar on the onshore settlement platform, up from its previous close of 1,386.0.
Bond markets saw yields ease, with the three-year treasury bond yield slipping 0.2 basis points to 3.851% and the benchmark 10-year yield falling 6.4 basis points to 4.350%. September futures on three-year treasury bonds gained 0.05 point to 103.18.