Samsung Electronics reported earnings that exceeded market expectations, yet the KOSPI index is declining. Analysts attribute this drop to increased selling pressure from foreign and institutional investors.
As of 12:30 p.m. on October 8, the KOSPI was down 81.05 points (1.18%) at 6,723.82.
The index opened at 6,807.64, up 1.26 points from the previous close, but quickly turned negative, eventually falling to the low 6,700s.
Market attention was focused on Samsung Electronics' third-quarter earnings, which showed a revenue of 195 trillion won, a 126.6% increase from the same period last year. Operating profit reached 107.4 trillion won, up 782.5% year-on-year.
These figures surpassed the previous record set in the second quarter (April to June), where revenue was 171.5 trillion won and operating profit was 89.5 trillion won. The operating profit also slightly exceeded the consensus estimate of 106 trillion won compiled by financial information provider FnGuide.
Despite the strong earnings report, Samsung's stock is moving in the opposite direction. It showed a gain of over 1% in pre-market trading but is currently down 1.12%. The company is among the top stocks being sold off by institutions, with net sales amounting to 317.5 billion won.
In the broader securities market, foreign and institutional investors have sold a net 1.09 trillion won and 1.2787 trillion won, respectively. In contrast, individual investors are net buyers, purchasing 1.9803 trillion won.
Most large-cap stocks are also experiencing declines. SK Square is down 6.83%, Samsung Electro-Mechanics is down 2.24%, Hyundai Motor is down 3.13%, and KB Financial is down 2.26%. Among the top 10 market capitalization stocks, only LG Energy Solution is up by 3.96%.
At the same time, the KOSDAQ index has fallen by 7.82 points (0.87%) to 890.57. Stocks like Alteogen (-6.03%), EcoPro (-0.65%), and Rainbow Robotics (-3.47%) are down, while JUSUNG Engineering (10.30%), Rino Technology (4.11%), and Wonik IPS (4.58%) are up.
Overnight, U.S. markets closed lower. The Dow Jones Industrial Average fell by 341.41 points (0.66%) to finish at 51,179.87. The S&P 500 dropped 17.16 points (0.22%) to close at 7,801.77, and the Nasdaq Composite fell by 61.20 points (0.22%) to end at 27,538.69.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, despite the stabilization of the surge in U.S. 10-year Treasury yields and a reduction in the decline of U.S. stocks, the market is likely to experience volatility as it digests Samsung's preliminary earnings report, along with supply and demand issues related to the holiday and options expiration dates."
She added, "Since this is a preliminary report from Samsung, the lack of detailed figures may lead to temporary discrepancies in market interpretations regarding exchange rate impacts and performance by business segment. It is also important to consider short-term supply and demand issues related to the market closure on Friday and ETF rebalancing on the 8th and 12th, as well as options expiration on the 8th."
As of 12:30 p.m. on October 8, the KOSPI was down 81.05 points (1.18%) at 6,723.82.
The index opened at 6,807.64, up 1.26 points from the previous close, but quickly turned negative, eventually falling to the low 6,700s.
Market attention was focused on Samsung Electronics' third-quarter earnings, which showed a revenue of 195 trillion won, a 126.6% increase from the same period last year. Operating profit reached 107.4 trillion won, up 782.5% year-on-year.
These figures surpassed the previous record set in the second quarter (April to June), where revenue was 171.5 trillion won and operating profit was 89.5 trillion won. The operating profit also slightly exceeded the consensus estimate of 106 trillion won compiled by financial information provider FnGuide.
Despite the strong earnings report, Samsung's stock is moving in the opposite direction. It showed a gain of over 1% in pre-market trading but is currently down 1.12%. The company is among the top stocks being sold off by institutions, with net sales amounting to 317.5 billion won.
In the broader securities market, foreign and institutional investors have sold a net 1.09 trillion won and 1.2787 trillion won, respectively. In contrast, individual investors are net buyers, purchasing 1.9803 trillion won.
Most large-cap stocks are also experiencing declines. SK Square is down 6.83%, Samsung Electro-Mechanics is down 2.24%, Hyundai Motor is down 3.13%, and KB Financial is down 2.26%. Among the top 10 market capitalization stocks, only LG Energy Solution is up by 3.96%.
At the same time, the KOSDAQ index has fallen by 7.82 points (0.87%) to 890.57. Stocks like Alteogen (-6.03%), EcoPro (-0.65%), and Rainbow Robotics (-3.47%) are down, while JUSUNG Engineering (10.30%), Rino Technology (4.11%), and Wonik IPS (4.58%) are up.
Overnight, U.S. markets closed lower. The Dow Jones Industrial Average fell by 341.41 points (0.66%) to finish at 51,179.87. The S&P 500 dropped 17.16 points (0.22%) to close at 7,801.77, and the Nasdaq Composite fell by 61.20 points (0.22%) to end at 27,538.69.
Han Ji-young, a researcher at Kiwoom Securities, stated, "Today, despite the stabilization of the surge in U.S. 10-year Treasury yields and a reduction in the decline of U.S. stocks, the market is likely to experience volatility as it digests Samsung's preliminary earnings report, along with supply and demand issues related to the holiday and options expiration dates."
She added, "Since this is a preliminary report from Samsung, the lack of detailed figures may lead to temporary discrepancies in market interpretations regarding exchange rate impacts and performance by business segment. It is also important to consider short-term supply and demand issues related to the market closure on Friday and ETF rebalancing on the 8th and 12th, as well as options expiration on the 8th."
* This article has been translated by AI.
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