Samsung shares touch near 2-month low on Note 7 worries

US consumer agency HMC Investment has warned consumers on Friday to stop using the phone in response to reports its batteries combusted while charging or in normal use.

By: Reuters | Seoul | Published:September 12, 2016 7:01 am
Samsung, Samsung Galaxy Note 7, Galaxy Note 7, Samsung electronics, Samsung Electronics Co., Samsung smartphones, Samsung shares, South Korea, HMC investment, Note 7 battery combustion, Samsung news, business news, companies news, latest news, Indian express Samsung on Saturday urged all customers affected by the recall, which the firm voluntarily initiated on Sept. 2 due to faulty batteries causing Note 7 phones to catch fire, to turn of their phones. (File Photo)

Shares of tech giant Samsung Electronics Co Ltd fell to their lowest level in nearly two months on Monday, hurt by worries the fallout from a recall of its Galaxy Note 7 smartphone may deal a bigger blow than anticipated.

Investors have wiped off 13 trillion won ($11.7 billion) from Samsung’s market capitalisation as of early Monday, with the firm’s common shares down 5.3 percent as of 0058 GMT, underperforming a 1.4 percent fall for the broader market and touching their lowest level since July 15.

The South Korean firm on Saturday urged all customers affected by the recall, which the firm voluntarily initiated on Sept. 2 due to faulty batteries causing Note 7 phones to catch fire, to turn off their phones.

“Uncertainties are being amplified,” HMC Investment analyst Greg Roh said. “It might cost the company more than first expected to deal with the current problems.”

The US consumer agency warned consumers on Friday to stop using the phone in response to reports its batteries combusted while charging or in normal use.

Aviation authorities and airlines around the world have also banned or issued warnings against using or charging the phone in planes or storing them in cargo.

Some analysts estimate the firm might lose nearly 5 trillion won worth of revenue after accounting for costs of the recall. The company has said it had sold 2.5 million Galaxy Note 7s that need to be replaced.