Despite strong earnings in the second quarter, 60% of listed companies saw their stock prices decline
Some 60% of the Kospi-listed companies that posted above-forecast results in the second quarter of this year have seen their share prices declining since reporting their quarerly results.
In particular, artificial intelligence-related and large semiconductor companies suffered steep price falls after US Big Tech’s disappointing second-quarter results sent their share prices sharply lower.
By contrast, shipbuilders have extended their upward trend as their order books are bulging.
Among the 106 Kospi-listed companies that have disclosed second-quarter earnings as of last Friday, 57 companies reported above-consensus profits, according to financial information provider FnGuide on Sunday.
Of them, the share prices of 34 companies (59.6%) have dropped as of Friday’s close, compared with the day before their earnings announcement.
This bucked the conventional wisdom that earnings improvement would lead the stock market higher.
Hanwha Systems Co.’ earnings surpassed the consensus forecast by the largest margin in the second quarter among the Kospi-listed firms.
Its operating profit for the second quarter came in at 79.8 billion won, 80.2% above market expectatiolns. However, its stock price has fallen nearly 13% in four days after its earnings release.
The share prices of Samsung Electronics Co., SK Hynix Inc. and Hanmi Semiconductor Co. have fallen by 6%, 17%, and 15%, respectively, since they disclosed second-quarter earnings.
LS Electric Co., regarded as a beneficiary of the AI boom, also reported forecast-beating results but its share price has plummeted 35% in one week since its second-quarter earnings release.
By Jun-Ho Cha
chacha@hankyung.com
