Stocks designated as the settlement of account dividend reference date at the end of this year are experiencing significant declines in stock prices as they reach the ex-dividend date. The ex-dividend date refers to the day when the right to receive dividends ceases.
Hanyang Securities shares were traded at 12,100 won on the KOSPI market at 9:37 a.m. on the 27th. The stock price dropped by 8.33% (1,100 won) compared to the previous day. At the same time, Kiwoom Securities and Samsung Securities shares fell by 7.37% (9,500 won) and 6.87% (3,300 won), respectively. Additionally, Il Sung IS, Korean Shell Petroleum, and SeAH Special Steel are also recording stock price declines around 6%.
All of these stocks have designated the 31st as the settlement of account dividend reference date. Considering that it takes two transaction days for settlement, only shareholders who purchased the stocks by the previous day can receive the dividends. This means that the day serves as the ex-dividend date.
Typically, on the ex-dividend date, as the right to receive dividends disappears, stock price declines generally correspond to the amount around the settlement dividend. On this day, as the domestic stock market is also weak, it seems that the drop in stock prices has widened.
As more corporations have introduced the so-called 'advance dividends and post-investment' strategy, it has become necessary to carefully consider the dividend reference dates. These are corporations that designate dividend reference dates separately by holding board meetings instead of at the end of the year. Over 100 corporations, including financial stocks, have announced advance dividends and post-investments.