Samsung Electronics' 4.4% fall weighs on stocks in Seoul
Samsung Electronics dropped as much as 4.4 per cent on Monday, helping drag South Korea’s equities benchmark down more than 1 per cent after Morgan Stanley lowered its target price for shares in the South Korean conglomerate.
The dip to Won2.65m ($2,434.62) per share at the week’s outset took the stock below the new target price of Won2.8m – previously Won2.9m – from Morgan Stanley analyst Shawn Kim, who also downgraded the bank’s recommendation for the stock from overweight to equal-weight.
The downgrade comes as some analysts have expressed concern that South Korea’s growth trajectory is lopsided – pointing to an over-reliance on semiconductors as profits at listed units of South Korea’s 10 biggest conglomerates almost doubled in the first three quarters of the year, hitting a record high on the back of booming chip businesses at Samsung Electronics and SK Hynix.
Samsung shares were still down 4.3 per cent in the afternoon session, while the benchmark Kospi index had dropped 1.3 per cent.
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