Samsung shares rise despite massive Note 7 smartphone recall

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Investors apparently do not see lasting damage to Samsung Electronics from the recall of 2.5 million of its Note 7 smartphones in 10 countries after the batteries in some caught fire or exploded.

Its shares fell when the recall was announced but rose 0.56 percent in Seoul on Monday.

Samsung’s affiliate SDI fell 2.76 percent although it has not been confirmed it made the faulty batteries.

The recall is estimated to cost the equivalent of around 900 million euros.

Samsung is also now likely to sell 10 million rather than 14 million of the phones this year according to technology forecaster Strategy Analytics.

But the total financial hit is seen as being less than five percent of Samsung’s projected profits for the second half of this year.

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