(Bloomberg) -- Samsung Electronics Co. shares surged Monday after South Korea’s biggest company announced a surprise plan late Friday to buy back about 10 trillion won ($7.2 billion) of its own stock over the next year.
The stock rose as much as 6.7% in Seoul trading Monday, adding to Friday’s 7.2% rise ahead of the news. Samsung will buy back about 3 trillion won of shares starting Monday and up till February 2025, all of which it will cancel. The board will deliberate how best to deploy the remaining 7 trillion won.
Analysts expect the buyback to provide a short-term catalyst to the stock, which slumped more than 30% this year before Monday’s jump. Its local competitor SK Hynix Inc. has climbed more than 20% over the same period.
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