Samsung Electronics has regained the 60,000 KRW level due to institutional buying. This is interpreted as a result of bargain hunting sentiment.
As of 10:22 AM on the 11th, Samsung Electronics is trading at 60,000 KRW, up 1.87% (1,100 KRW) from the previous day. Foreign investors are net selling 2.8 billion KRW, but institutions are driving the stock price by net buying 30 billion KRW.
On the previous day, Samsung Electronics announced its Q3 revenue and operating profit on the 8th, which were 79 trillion KRW and 9.1 trillion KRW respectively, falling short of the consensus (market average forecast) of 80.87 trillion KRW and 10.3047 trillion KRW.
The day before, Samsung Electronics reported consolidated Q3 revenue of 79 trillion KRW and operating profit of 9.1 trillion KRW. These figures were significantly below market expectations. Unusually, Young-Hyun Jeon, Vice Chairman and Head of Samsung Electronics' DS (Device Solutions) division, issued an apology. Samsung Electronics' stock price also plummeted to 58,900 KRW, marking the lowest in 1 year and 7 months.
No Geun-chang, a researcher at Hyundai Motor Securities, said, "Even considering one-time costs, Samsung Electronics' Q3 performance is excessively weak compared to competitors like Micron, which have already announced their results," and added, "We expect the weak performance to continue in Q4, traditionally a period of inventory adjustments and increased marketing expenses for finished products, compared to competitors."
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