Samsung shares recover after Note 7 debacle

The value of the electronic company listed a 1.30 percent boost being priced at $1,378 in the opening hours of trade

Shares of South Korean tech giant, Samsung Electronics, recovered at the Seoul stock exchange on Thursday after crashing earlier in the week.

The stocks of the company had crashed on October 11 after showing volatility on the previous day, following the withdrawal of its smartphone Galaxy Note 7 for their persistent problem of spontaneous combustion, EFE news reported.

The value of the company listed a 1.30 percent boost at the opening of trade on October 13 and at 11.33 am, they were bought for $1,378.

On Tuesday, when Samsung announced that it froze the sale of its high-end phablet, its shares sank by 8.04 per cent, marking its greatest stock market fall since 2008. The shares dropped by 0.65 percent further on October 12 after it announced a permanent halt in production of the phablet.

Samsung also announced a substantial reduction in its forecast results for the third quarter, after taking into account the amount it will have to return its customers (each phablet costs $882) for the more than two million handsets sold.

Samsung lowered its turnover forecast for July-September to around $42 billion, 4.09 percent less than its previous forecast and 8.94 percent less than what it collected in the third quarter of 2015.

This, however, did not seem to have affected investors, who bid Thursday for some shares, representing approximately a quarter of the total capitalisation of the stock market, and which are now a steal as compared to the prices following the launch of the Note 7.