On October 12, LG Energy Solution and Samsung SDI, leading companies in the energy storage system (ESS) sector, closed down 0.75% and 1.41%, respectively, compared to the previous trading day.
According to the Korea Exchange, LG Energy Solution finished at 398,000 won, while Samsung SDI closed at 561,000 won.
As reported by Yonhap News, shares related to secondary batteries initially rose in early trading on expectations of strong performance due to the benefits from ESS, but ultimately fell due to a sharp decline in the KOSPI.
Both stocks saw an increase of around 5% in the morning, driven by expectations of rising ESS demand from the expansion of AI data centers. However, they lost all their gains and ended lower as the KOSPI dropped.
The decline in the KOSPI was primarily attributed to significant net selling by foreign investors.
IBK Investment & Securities analyzed that LG Energy Solution's preliminary operating profit for the third quarter of this year exceeded market expectations by more than double, largely due to one-time compensation from North American automotive clients.
Samsung SDI, which had been in the red until the first quarter of this year, recorded an operating profit of 203.8 billion won in the second quarter, breaking a streak of seven consecutive quarters of losses. However, it appears that one-time factors also influenced Samsung SDI's third-quarter operating profit, including a production tax credit (AMPC) subsidy of 121 billion won and a settlement profit of approximately 150 billion won from acquiring a stake in Synergy Shells, a joint venture with General Motors in the U.S.
Meanwhile, the KOSPI experienced a sharp decline as major semiconductor stocks, including Samsung Electronics and SK Hynix, fell by more than 4%.
* This article has been translated by AI.
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