The KOSPI index, which had the "7000-pi" level in sight, fell more than 3%. Although it was the first trading day right after Samsung Electronics released a record-large shareholder return plan, it appears to have fallen short of meeting market expectations.
However, some rotation appeared to be underway. While shares of major stocks such as Samsung Electronics and SK hynix, along with other Samsung affiliates, fell across the board, the number of gainers on the main bourse far outnumbered decliners.
On the 24th, the KOSPI index closed down 3.12% (215.99 points) at 6,696.96 from the previous trading day. Opening at 6,881.07, down 31.88 points (0.46%) from the previous session, the KOSPI index widened its losses during the session and ultimately gave up the 6,700 level.
Foreigners and institutions were net sellers together on the main board. Foreigners net sold 3.8974 trillion won and institutions 1.6646 trillion won, while individuals alone net bought 3.84 trillion won.
The KOSPI index is interpreted to have fallen on market disappointment over the shareholder return plan put forward by Samsung Electronics. After the close on the 21st, Samsung Electronics announced a shareholder return policy of 90 trillion to 110 trillion won, but as it fell short of market expectations, Samsung affiliates broadly weakened.
Both Samsung Electronics(005930) and Samsung Electronics(1P)(005935) fell more than 8%, and "equity value stocks" holding stakes in Samsung Electronics, such as Samsung Life Insurance and Samsung C&T, also declined.
Kim Gibaek, a researcher at Shinhan Investment & Securities, said, "Samsung Electronics' shareholder return plan failed to surpass market expectations and was perceived as a catalyst that has run its course."
Lee Kyungmin, a researcher at Daishin Securities, said, "Not only was the plan for buybacks and cancellations not presented in detail, but there are also constraints due to the 10% ownership limit under the separation of banking and commerce law."
As Samsung Group stocks fell, investment funds flowed into previously neglected stocks. Gainers on the main bourse numbered 579, exceeding decliners (286). The researcher interpreted it as "an index adjustment due to declines in Samsung affiliates rather than broad market weakness."
Battery-related stocks such as LG Energy Solution and Samsung SDI jumped sharply, and POSCO Group shares also showed strength for the first time in a while.
The KOSDAQ market was strong. The KOSDAQ index closed up 1.42% (11.39 points) at 813.33 from the previous trading day. In the KOSDAQ market, individuals net sold 348.6 billion won, while foreigners and institutions net bought 326.3 billion won and 26.8 billion won, respectively.
The researcher said, "As flows that exited Samsung Electronics moved in, secondary batteries and materials, parts, and equipment showed strength together."