Samsung Electronics Returns to 6 Months Ago... Will It Become '30,000 Electronics'?

Down 31.6% Since Early Year... Falls to 42,000 Won Range After 6 Months

Kim Ki-nam, Vice Chairman and CEO of Samsung Electronics, is speaking at the 51st Annual General Meeting of Shareholders of Samsung Electronics held at the Suwon Convention Center in Yeongtong-gu, Suwon-si, Gyeonggi-do on the morning of the 18th. Photo by Kang Jin-hyung, Suwon aymsdream@

[Asia Economy Reporter Minwoo Lee] The stock price of Samsung Electronics, considered the "blue-chip" stock in the domestic market, has fallen back to the level of six months ago. It has dropped 31.6% from the all-time high (post-stock split) of 62,800 KRW recorded at the beginning of the year. Despite individual investors rushing into securities trading and buying Samsung Electronics shares amid the bear market, the decline appears to be due to the inability to stop foreign investors' selling pressure.

On the 19th, Samsung Electronics' stock price closed at 42,950 KRW, down 5.81% from the previous day. This is the first time in six months that Samsung Electronics has fallen to the 42,000 KRW range since August 26 last year, when it was 42,950 KRW.

The concentrated selling by foreign investors seems to be the main cause of the price decline. As the novel coronavirus disease (COVID-19) spread in the US and Europe, the economies of various countries began to freeze. The uncertainty in the global financial markets increased due to COVID-19, and foreign investors started withdrawing funds from Korean assets, which are considered relatively risky assets.

In fact, from the 21st of last month to the 18th of this month, foreign investors sold Samsung Electronics shares for 17 consecutive trading days. The total amount reached 6.85 trillion KRW, averaging about 400 billion KRW sold daily. However, this selling trend is evaluated to be due to foreign investors' cash securing movements rather than internal factors of Samsung Electronics. Therefore, there is an opinion that the stock price could fall further regardless of Samsung Electronics' performance. Some expect it to plunge to the 30,000 KRW range. The last time Samsung Electronics recorded a price in the 30,000 KRW range was on January 11 last year, at 39,950 KRW. A financial investment industry official said, "It is almost a mechanical cashing-out movement through algorithmic trading, etc.," adding, "There is a considerable possibility that the stock price will fall further."

This content was produced with the assistance of AI translation services.