Samsung Electronics shares plunge and circuit breaker triggered despite reporting record earnings

Samsung Electronics 7day's closing price was 29ten-thousand6000won. The sharp decline in the share price caused trading on the Korea Composite Stock Price Index market to become highly volatile.

The intraday low was 28ten-thousand6000won. As the decline widened in the process, investor attention was focused on the stock.

The decline from the previous day was 6.92%, while the maximum intraday decline was 9.75%. The figures also confirmed that selling pressure had concentrated within a short period.

At 10 a.m.,23 minutes, a sell-side circuit breaker was triggered, and from 1 p.m.,51 minutes and 33 seconds, trading was halted for 20 minutes. It was the sixth circuit breaker on the KOSPI this year.

On the day, Samsung Electronics disclosed its 2·4quarter preliminary results, reporting revenue of 171 trillion won and operating profit of 89 trillion 4000 billion won. The company’s disclosure provides figures that form the basis for investment decisions.

Operating profit increased by 1810% year on year. Despite these performance figures, the market reaction was a sharp decline.

Securities analysts offered the view that the latest sharp decline was a matter of investor sentiment rather than a fundamental problem. Some reports recommended caution regarding a short-term increase in volatility.