June 7 (Bloomberg) -- South Korea’s stocks fell the most in 11 months after JPMorgan Chase & Co. cut its profit estimates for Samsung Electronics Co. and foreign investors sold the most domestic equities since August 2011.
The benchmark Kospi index dropped 1.8 percent to 1,923.85 at the close, the biggest loss since July 2012. Samsung Electronics, the country’s most valuable company, slid 6.2 percent, the most since August 2012. Samsung accounted for almost 70 percent of the Kospi’s losses. Hyundai Motor Co. dropped 1.2 percent. Foreign funds sold a net 928.2 billion won ($831.1 million) of Kospi index shares today, Korea Exchange Inc. data show.
“Samsung is leading the decline in South Korean stocks today as some reports cite uncertainties in the company’s future smartphone sales and some investors appear to be selling the biggest South Korean stocks to brace for increasing volatility in financial markets,” Seung Min You, chief strategist at Samsung Securities, said by phone today.
Samsung Electronics, the world’s top smartphone maker, had its share-price and earnings estimates cut at JPMorgan, which said weaker-than-expected high-end smartphone shipments will likely result in lower margins.
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