Samsung SDI (006400.KS) rose on its own on expectations of raising about 4.4 trillion won ($3.2 billion) in fresh cash, while other Samsung Group stocks including Samsung Electronics broadly fell.
On the main Korea Exchange board, Samsung SDI closed at 515,000 won on the 24th, up 7.74% from the previous session. The gain stood in contrast to the sharp declines in other major Samsung affiliates.
Driving the stock was news of the large cash infusion. Samsung SDI said in a regulatory filing after the market closed on the 21st that it would sell its stake in Samsung Display for about 4.45 trillion won ($3.2 billion).
The company did not disclose specific uses for the proceeds, but the market expects the funds to be used first for capital investment in the SynergyCells battery plant under construction in New Carlisle, Indiana, in the United States.
Park Hyun-soo, an analyst at Shinyoung Securities, said in a report that day that the move was positive because it clarified how the company would fund an expansion of energy storage system (ESS) battery capacity in North America. Because SynergyCells is set to convert into a wholly owned entity, the company will be able to recognize 100% of the battery profit as net income attributable to controlling shareholders, unlike in a joint-venture structure, Park said.
Samsung SDI's stock has shown wide swings in recent months. After climbing as high as 723,000 won in late April, the stock entered a correction and slid to 341,500 won by late July. On the 24th, it recovered the 500,000-won line, drawing attention to where it heads next.
Major Samsung Group stocks including Samsung Electronics, Samsung C&T, Samsung Life Insurance and Samsung Fire & Marine Insurance all fell that day, while Samsung SDI alone posted a clear gain. Samsung Electronics dropped more than 9% during the session to 255,000 won.
Expectations that Samsung SDI's large battery investment could materialize spread to other secondary battery stocks. ESS and battery-related shares rose together, drawing buying interest across the sector.
L&F closed at 121,600 won, up 16.36% from the previous session, while POSCO Future M ended at 170,900 won, up 10.33%.
