A bumper payout from Samsung Electronics (OTC:SSNLF) Co. could spell trouble for the won this thirty days.
Dividend payments to investors being foreign which typically pressure the currency in April — are anticipated to more than double this month to 10.5 trillion won ($9.4 billion) from a 12 months ago, according to Bloomberg’s calculations considering business filings and data through the Korea Exchange. This is due primarily to a money that is unique from Samsung (KS:005930) Electronics.
The headwinds risk undercutting the momentum that is positive’s aided the won outperform its Asian peers in the last one month. The currency has rebounded from its biggest loss that is quarterly a year as being a data recovery in exports and consumer belief point to an upturn in South Korea’s economy.
“There is vigilance that keeps growing the South Korean foreign-exchange market as the season of remitting dividend funds out of the country arrives,” said Jeon Seungji, a currency analyst at Samsung Futures Inc. “Markets will soon be specially attentive to such flows around April 16 whenever Samsung is planned to allot its dividends.”
The expected jump in dividend repayments this month is largely due to Samsung Electronics’ special money handout worth 1,578 won per share. Combined with the regular payment, the company’s year-end dividend per stock will probably be worth 1,932 won, a lot more than five times the amount that is usual, Meta News found.
Nevertheless, some say the strain on the money shall be short-lived. Lim Hyeyoun, an economist at KTB Investment & Securities Co., expects the won to go up as high as 1,080 within the half that is 2nd of the year, versus its close of 1,117.40 on Thursday.
The won is anticipated to return to its fundamentally adequate level,” Lim said “Once the occasions pass. A bumper payout from Samsung Electronics.