[Featured Stock] PSK Rises on Expectations of Strong Commitment to Boost Share Price
[Asia Economy Reporter Lee Seon-ae] PSK's stock price is showing strength.
As of 10:04 AM on the 28th, PSK is trading at 37,900 KRW, up 2.57% from the previous day. The price rose to 39,150 KRW early in the session but the increase slowed due to the impact of a declining index.
This is interpreted as a positive reaction to the announcement of the treasury stock acquisition trust contract.
PSK announced the signing of a treasury stock acquisition trust contract. The contract amount is 20 billion KRW, starting on September 27, 2021, and ending on March 26, 2022. This represents about 3.7% of its market capitalization of 545.6 billion KRW. PSK's largest shareholder, PSK Holdings (with a 32.14% stake), also announced a treasury stock acquisition trust contract worth 10 billion KRW, which is about 4.0% of its market capitalization of 251.2 billion KRW.
Kim Kyung-min, a researcher at Hana Financial Investment, stated, "The fact that PSK and PSK Holdings each signed their own treasury stock trust contracts carries various implications," adding, "It expresses the company's intention to support the stock price and symbolically overcomes the negative factors affecting small and mid-cap stocks."
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Although the contract amounts are not large relative to each company's market capitalization, they are judged to be positive for the stock price. This is because it is effectively the first treasury stock acquisition trust contract since the corporate split in May 2019, showing the company's intention to boost the stock price. In PSK's case, the stock price fell from 47,800 KRW on August 9 to 34,550 KRW on September 16 over the past three months. The cause of the price decline was concerns about the visibility of domestic production of new semiconductor equipment. Regarding the Bevel Etch equipment, which was the subject of concern, customer evaluations are proceeding smoothly. Development has been ongoing since 2017, providing solutions for Edge Engineering in devices below 20nm.
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