Samsung Electronics Co.'s presence on the main bourse is anticipated to edge down after the company completes its plan to cancel its treasury shares, market watchers said Wednesday.
NH Investment & Securities Co. said Samsung Electronics' presence on the KOSPI200, the basket of 200 blue chip firms' shares listed on the main bourse, will drop by 1.3 percentage points if the company completes the write down.
"If there is no change in the price, the combined market capitalization will fall if the number of listed shares declines,"
NH Investment & Securities said in a report. "This will lead to a fall of Samsung's presence on the KOSPI200."
Last month, the South Korean tech giant said it plans to cancel existing treasury shares held by the company worth 49 trillion won (US$43 billion).
The company said its strong performance and cash holdings have reduced the necessity to hold treasury shares. Samsung added it will scrap the shares in two phases to limit the impact on the financial market.
Experts said a cancellation of treasury shares normally benefits investors as it reduces the number of shares being circulated in the market. (Yonhap)