Shares of Samsung Electronics rise despite company chairman's hospitalizationUpdated: 2014-05-14 03:36:11 (KST)
One day after Samsung Electronics' chairman Lee Kun-hee was hospitalized, shares of the tech giant gained the most they had in nine months.
Shares of the company jumped 4 percent on Monday, closing the day at around one-thousand four-hundred U.S. dollars.
They continued with the gains on Tuesday as well, up nearly zero.nine percent.
Analysts say Samsung's succession plan played a big part in the gain, as the company has a contingency for such events.
Lee's son Jae-yong is likely to inherit Samsung Electronics, the flagship of the group.
He and his two sisters will be splitting up some of the group's other affiliates.
"There are a lot of expectations about a speedy restructuring and succession due to deteriorating health conditions of chairman Lee Kun-hee. During the restructuring process, the most likely scenario is that Samsung Electronics will buy more of its own shares, leading to an increase in share prices."
Samsung Securities Company, Korea's largest brokerage by market value, will sell its entire stake to Samsung Life Insurance Company.
Another affiliate, information and communication technology provider Samsung SDS Company, plans to sell shares in Korea this year.
"Behind me, that's the hospital where Lee Kun-hee is being treated, and his health is on the minds of global investors. But it's not the first time. Lee was hospitalized back in 2008 and again in 2009, and both times, shares of Samsung Electronics gained suggesting that the company is not entirely dependent on just one individual.
Kim Ji-yeon, Arirang News."
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