Samsung Group Stocks with Large Market Cap but Weak Performance

Weakness Due to Foreigners and Institutions Realizing Gains

[Asia Economy Reporter Song Hwajeong] Recently, the top Samsung Group stocks by market capitalization have shown sluggish performance. Major investors such as foreigners and institutions have been realizing profits, causing the stock prices to remain weak.

According to the Korea Exchange as of the previous day, Samsung Biologics ranked 5th in market capitalization. It had surpassed SK Hynix on the 20th to reach 2nd place but subsequently declined to 5th. Samsung Biologics' stock price has fallen for five consecutive days recently, dropping below the 800,000 KRW level.

Samsung SDI, which was ranked 7th in market capitalization at the beginning of this month, has also fallen to 9th. Samsung SDI showed a decline for two consecutive days recently. On the previous day, it dropped 2.9%, falling below the 460,000 KRW level. Samsung Electronics also declined for three consecutive days until the previous day, falling below the 55,000 KRW level. Although it rose to 59,000 KRW in mid-last month, raising expectations of recovering to 60,000 KRW, it has since retreated.

This weakness is interpreted as due to selling pressure from foreigners and institutions. Last month, institutions sold Samsung Electronics shares worth 1.1065 trillion KRW, making it the largest seller. Foreigners also net sold Samsung Electronics shares worth 796.3 billion KRW last month, making it the largest seller. Additionally, foreigners sold Samsung SDI shares worth 201.7 billion KRW, ranking it among the top sellers. In the case of Samsung Biologics, foreigners and institutions sold shares simultaneously during the recent five consecutive days of decline. During this period, foreigners and institutions sold Samsung Biologics shares every day except one.

Previously, due to the strong performance of BBIG (Bio, Battery, Internet, Game) sectors, Samsung Biologics and Samsung SDI had risen significantly, prompting foreigners and institutions to realize profits. Samsung SDI recorded an intraday high of 509,000 KRW on the 7th of last month but then showed weakness, falling to the 410,000 KRW level. Recently, foreigners have resumed buying, slightly recovering the stock price.

Although the BBIG stocks that had risen significantly have recently seen a pause in price increases, they are expected to continue playing a leading role, so the weak phase is unlikely to persist. Seo Jeonghoon, a researcher at Samsung Securities, said, "As recent individual investors' preferences focus on large-cap stocks with clear momentum, the supply and demand conditions for the existing leading stocks in BBIG are also expected to be positive."

Samsung Electronics is expected to be influenced by its strong third-quarter earnings. Kim Dongwon, a researcher at KB Securities, said, "Samsung Electronics' third-quarter operating profit is estimated at 10 trillion KRW, supported by strong performance in the set business (smartphones, home appliances), marking the first quarterly operating profit of 10 trillion KRW in seven quarters since Q4 2018."

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