Samsung Electronics, Will It Break the '60,000 Won Electronics Jinx' This Time?

[Asia Economy Reporter Minji Lee] "60,000 KRW is a mythical barrier for Samsung Electronics. When the price goes up, it falls again, and when it goes up again, it falls again." As the uncertainty of the US presidential election clears, the global stock market is showing an upward trend, and Samsung Electronics has also broken away from its stagnant stock price to rise to the 60,000 KRW range. However, as signs of the so-called '60,000 KRW Samsung Electronics jinx,' where the stock price collapses at the 60,000 KRW level, are emerging, posts criticizing the sluggish stock price trend are appearing on shareholder boards.

According to the Korea Exchange on the 10th, Samsung Electronics was traded at 60,200 KRW, the same as the previous day, around 3 p.m. During the session, Samsung Electronics rose to 60,500 KRW but fell to 59,500 KRW, fluctuating around the 60,000 KRW level. On this day, institutions turned to net selling, causing the stock price to decline. Currently, institutional investors have net sold 1.07 million shares in the market, while foreigners have net bought 350,000 shares.

Although Samsung Electronics is attempting to stabilize in the 60,000 KRW range, individual investors have maintained a selling trend this month. Looking at investor trends this month, individuals have sold about 12.1 million shares in the market. On the 5th, when the stock price rose about 3% in one day, individuals sold 8.8 million shares in the market in a single day. As foreigners and institutions increased their selling pressure near the 60,000 KRW level, inducing a stock price decline, it is analyzed that a psychological resistance line has formed at the 60,000 KRW level among individual investors. On some shareholder boards, there was even a saying, "The 'national rule' (a generally accepted rule) is to buy below 60,000 KRW and sell unconditionally above 60,000 KRW."

The securities industry's perspective is quite different. Market experts have set target prices for Samsung Electronics up to 86,000 KRW. The median target price is around 76,000 KRW, suggesting it could rise more than 30% from the current level. Although sales are estimated to be 63.4838 trillion KRW and operating profit 10.2668 trillion KRW in the fourth quarter, down 5% and 16% respectively from the previous quarter, the focus is more on the possibility of entering a phase of earnings growth starting next year.

Samsung Electronics is benefiting in the telecommunications sector in the US and European regions due to US regulations against Huawei. With the surge in demand for mobile semiconductors, prices of NAND and DRAM are rising, and semiconductor business performance is expected to improve next year. The prospect of strengthened shareholder return policies is also positive for the stock price. Minseong Hwang, a researcher at Samsung Securities, said, "Although the shareholder return policy expected by the market was postponed in the third quarter, attention should be paid to the fact that dividend expansion and long-term increases in returns are an irreversible trend."

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