Samsung Electronics Co., Ltd.'s KOSPI and KOSDAQ Rise Together

[Anchor]
The KOSPI and KOSDAQ indexes also rose as Samsung Electronics, the top market cap on the KOSPI, surged on news of treasury stock purchases and incineration.

Shares of Samsung affiliates also surged as Samsung Electronics' shareholder value is expected to rise.

Reporter Ryu Hwan-hong reports.

[Reporter]
Samsung Electronics shares have gained ground as foreign investors have returned in 13 days.Shares of Samsung Electronics, which soared to 7.5% in the early days of

, rose 5.98% to close at 56,700 won.

Investor sentiment was revived by the news that Samsung Electronics would buy 10 trillion won worth of treasury stocks for a year and incinerate 3 trillion won within three months to increase shareholder value.

Shares of affiliates also rose, with Samsung Life Insurance, which holds Samsung Electronics shares as well as Samsung Electronics, soaring 11.48% and Samsung Fire & Marine Insurance soaring 10.48%.

The market evaluated that the incineration of 3 trillion won worth of treasury stocks will reduce about 1% of the market capitalization, which will be positive for stock prices, and expressed expectations on how to use the remaining 7 trillion won worth of treasury stocks.

However, even if Samsung Electronics defends its stock price at around 50,000 won, it has been advised that its performance through the restoration of technological competitiveness should be supported for a further rise.

[Yum Seung-hwan/ Director of LS Securities: In order to raise the stock price significantly, Samsung Electronics' competitiveness, semiconductor business will improve, Nvidia supply, or other momentum to raise Samsung Electronics' performance will allow the stock price to level up once more. So it may take a little more time to confirm that.]

As Samsung Electronics surged, the KOSPI and KOSDAQ indexes rose together for the first time since the Trump shock of the U.S. presidential election.

The Kospi closed up 2.16 percent at 2,469.07, edging closer to the 2,500-point mark.

The KOSDAQ index also reversed its gains during the day, rising 0.6% to close at 689.56.

Both the KOSPI and KOSDAQ indexes rose, but foreigners were net sellers in both markets.

Although our stock market has been revitalized for the first time in a long time, financial authorities held a meeting to check the stock market situation and came up with countermeasures regarding the plunge in our stock market after the U.S. presidential election.

First of all, in order to stimulate the stock market, the government will start executing 200 billion won worth of value-up funds this week and push for the creation of an additional 300 billion won fund.

In addition, he believes that institutional investors need to play a more active role as foreign investors' supply and demand volatility has increased, and urged them to make investment decisions from a mid- to long-term perspective.

I'm YTN's Ryu Hwan Hong.

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