Samsung lost a critical patent oriented court case against Apple in America, being forced to pay their rivals over $1 billion dollars in damages. Investors shed shares after the case and the ramifications hit hard.
Samsung have lost $12 billion in market capitalisation in a single day movement, their lowest closing since October 2008. Other group companies that owned Samsung Electronics shares, or that were included in Samsung’s smartphone manufacturing value chain were also hit. This includes Samsung Electro Mechanics Co, which dropped 6.4 percent.
Kawk Joong-bo, an analyst at Samsung Securities said “There was steady buying from foreign investors despite Samsung Group shares weighing in the wake of Samsung’s legal loss.”
Foreign investors bought $309 million in shares while institutional and retail investors sold 116.6 and 199.5 billion won respectively.
Kitguru says: A tough time ahead for Samsung, especially if other countries follow the same path as America when ruling.