KOSPI falls 2.6% to 6,625.93 despite Samsung's record quarterly operating profit
In short
South Korea's KOSPI closed down 177.97 points (2.62%) at 6,625.93 on 8 October as foreign and institutional investors sold, even though Samsung Electronics reported third-quarter operating profit of 107.4 trillion won earlier that day. The Kosdaq fell 6.16 points (0.69%) to 892.27, and Samsung Electronics shares fell 2.42% to 262,000 won.
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South Korea's benchmark KOSPI closed at 6,625.93 on 8 October, down 177.97 points or 2.62% from the previous session, according to Yonhap, citing the Korea Exchange. The index opened 4.78 points higher at 6,808.68 but soon turned lower and extended its losses in the afternoon. Asia Economy reported that selling intensified late in the session. The Kosdaq closed 6.16 points (0.69%) lower at 892.27. [ 1 , 2 , 3 , 5 , 6 ]
The decline came on the day Samsung Electronics reported preliminary third-quarter results before the market opened. Korea Economic Daily reported operating profit of 107.4 trillion won, which the company said made it the first Korean company to exceed 100 trillion won in quarterly operating profit. Asia Economy put revenue at 195 trillion won and said brokerages had expected the results to improve foreign buying. Samsung Electronics shares closed 2.42% lower at 262,000 won, Korea Economic Daily reported. A Yonhap headline asked whether investors were selling on the news or rebalancing. [ 3 , 5 , 7 ]
Foreign investors and institutions were both net sellers on the main board, but outlets give different amounts. Korea Economic Daily reported net sales of 1.988 trillion won by foreigners and 1.671 trillion won by institutions, a combined 3.659 trillion won, against net buying of 2.906 trillion won by individuals. Asia Economy reported foreign net sales of 2.4247 trillion won, institutional net sales of 2.0888 trillion won and individual net buying of 3.7385 trillion won. On the Kosdaq, Korea Economic Daily said institutions sold a net 107 billion won while foreigners and individuals bought 60 billion won and 51 billion won. [ 3 , 5 ]
Asia Economy said almost all sectors fell, with finance down 4.11%, transport equipment and parts down 3.94%, pharmaceuticals down 3.69% and IT services down 3.54%; only textiles and apparel and real estate edged higher. Among large companies, SK Square fell 7.97%, Samsung C&T 4.91%, Samsung Biologics 4.39%, Samsung Life 3.56%, Hyundai Motor 3.27% and Samsung Electro-Mechanics 2.99%. [ 5 ]
Korea Economic Daily linked the fall to an overnight decline on Wall Street, where the Dow fell 0.66% and the S&P 500 and Nasdaq 0.22% each as the US 10-year Treasury yield rose above 5.36% intraday, its highest since 2002. It also cited minutes of the September Federal Reserve meeting in which most participants judged one more rate rise by year-end likely appropriate. The won-dollar rate fell 1.9 won to 1,338.5 won at the daytime close. [ 2 , 3 , 6 ]
Why it matters
Business outlets and Yonhap noted that a record result from the market's largest company did not prevent a broad sell-off, with almost all sectors lower. Korea Economic Daily linked the fall to higher US Treasury yields and Fed minutes pointing to a possible further rate rise, which ties the Korean market to US rate expectations.
Key facts
- The KOSPI closed at 6,625.93, down 177.97 points or 2.62% from the previous session. [ 1 , 2 , 3 , 6 ]
- The Kosdaq closed at 892.27, down 6.16 points or 0.69%. [ 1 , 2 , 3 , 6 ]
- The KOSPI opened 4.78 points (0.07%) higher at 6,808.68 before turning lower and extending losses in the afternoon. [ 1 , 5 ]
- Samsung Electronics reported third-quarter operating profit of 107.4 trillion won, the first time a Korean company has topped 100 trillion won in quarterly operating profit. [ 3 , 5 , 7 ]
- Samsung Electronics shares fell 2.42% to 262,000 won. [ 3 ]
- Foreign investors and institutions were net sellers on the main board while individuals were net buyers, though outlets report different amounts. [ 3 , 5 ]
- The won-dollar exchange rate fell 1.9 won to 1,338.5 won per dollar at the daytime close. [ 2 , 3 , 6 ]
Confirmed by several sources
- The KOSPI fell 177.97 points (2.62%) to close at 6,625.93 on 8 October. [ 1 , 2 , 3 , 6 ]
- The Kosdaq fell 6.16 points (0.69%) to 892.27. [ 1 , 2 , 3 , 6 ]
- The KOSPI opened at 6,808.68. [ 1 , 5 ]
- Samsung Electronics reported third-quarter operating profit of 107.4 trillion won, a record. [ 3 , 5 ]
- Foreign investors and institutions were both net sellers on the KOSPI. [ 3 , 5 ]
- The won-dollar rate ended the daytime session at 1,338.5 won, down 1.9 won. [ 2 , 3 , 6 ]
Still unclear
- How much foreign investors and institutions sold. Korea Economic Daily reports net sales of 1.988 trillion won by foreigners and 1.671 trillion won by institutions, with individuals buying 2.906 trillion won; Asia Economy reports 2.4247 trillion won, 2.0888 trillion won and 3.7385 trillion won respectively.
- Why the market fell despite Samsung's results. Yonhap's headline asks whether it was selling on the news or portfolio rebalancing; Korea Economic Daily points to US Treasury yields and Fed minutes; no outlet gives a definitive cause.
- Samsung Electronics' third-quarter revenue of 195 trillion won. Reported only by Asia Economy.
What local media are saying
Timeline, local time
- Yonhap reports the KOSPI closed 2.62% lower at 6,625.93. [ 1 ]
- Korea Economic Daily reports combined foreign and institutional net selling of 3.659 trillion won. [ 3 ]
- Yonhap updates its report, noting the fall came despite Samsung Electronics' 107 trillion won operating profit. [ 4 ]
- Asia Economy reports heavy selling late in the session and losses across almost all sectors. [ 5 ]
- Yonhap publishes analysis asking whether selling on the news or rebalancing drove the decline. [ 7 ]