Samsung Shares Falls for a Third Day on Slowdown Concern
Samsung Electronics Co., the world’s largest maker of televisions and mobile phones, dropped for a third day in Seoul trading amid concern that a global economic slowdown may crimp sales.
Samsung fell 3 percent to 1,126,000 won, the lowest closing price since Feb. 14, while the benchmark Kospi index declined 1.2 percent. The stock has gained 6.4 percent this year.
The MSCI Asia Pacific Index (MXAP) declined for a third straight day after Premier Wen Jiabao said China’s economy faces “relatively large” downward pressure, while Japanese machinery orders fell more than expected, adding to a disappointing U.S. jobs report. Suwon, South Korea-based Samsung last week reported second-quarter sales that missed estimates.
“There are worries about the macro economy,” Lim Dori, a Seoul-based analyst at Shinyoung Securities Co., said by phone. “European financial institutions are cutting risky holdings, and as part of that, they’re selling off Korea’s representative stock Samsung.”
Samsung posted second-quarter sales of 47 trillion won ($41 billion), trailing the 49.8 trillion-won average of 35 analyst estimates compiled by Bloomberg. Operating profit rose 79 percent from a year earlier to a record 6.7 trillion won.
A recovery in Samsung’s chip and display businesses is more gradual than expected, Lim said.
The electronics maker also faces patent disputes with Apple Inc., a competitor that’s also its biggest customer, which have led to sales of its tablets and smartphones being blocked in some markets.
Samsung lost an emergency bid on July 6 to resume selling its Galaxy Tab 10.1 tablet computer in the U.S., while a ban on sales of its Galaxy Nexus smartphone in the market was put on hold for a least a week, according to an appeals court ruling.
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