As Samsung Electronics Recovers, Group Funds Also 'Flex'

Samsung Electronics Hits Record Highs Consecutively... Samsung Group Fund 1-Month Average Return 7.07%

[Asia Economy Reporter Kum Boryeong] As Samsung Electronics' stock price continues to hit new highs, the Samsung Group fund's returns are also improving.

According to the Korea Exchange on the 16th, Samsung Electronics' closing price on the 13th reached 63,200 KRW, setting a new 52-week high. As of 11:40 AM that day, the price rose 4.11% (2,600 KRW) from the previous close to 65,800 KRW. During the trading session, it surged to 65,900 KRW, marking an all-time high.

Lee Kyung-min, a researcher at Daishin Securities, explained, "Samsung Electronics is benefiting from various positive factors such as a turnaround and recovery in the semiconductor industry, expectations for Samsung Group's expanded dividend policy, and large-scale foreign buying due to capital movement to emerging markets." He added, "Investors' expectations are growing for Samsung Electronics to reach 70,000 KRW and for the KOSPI to break out of its box range." Foreign investors purchased a net 1.4801 trillion KRW worth of Samsung Electronics shares from the 9th to the 13th alone.

Samsung Electronics' stock price has been steadily trending upward. Considering the closing price was 47,850 KRW on May 15, it rose 32.08% over six months until the 13th of this month. Compared to the closing price of 58,000 KRW on August 14, it increased 8.97% in three months.

Thanks to Samsung Electronics, the Samsung Group fund's returns have also increased. The Samsung Group fund has the largest proportion of Samsung Electronics in its portfolio, so it is greatly influenced by Samsung Electronics' stock price. According to the fund evaluation company FnGuide, as of the 12th, the Samsung Group fund's one-month return was 7.07%, ranking second among FnGuide's 44 thematic funds. The three-month return was also 5.92%, ranking fourth.

Samsung SDI and Samsung Life Insurance also contributed to the returns by riding the stock price uptrend. Samsung SDI's closing price rose from 429,000 KRW on the 15th of last month to 501,000 KRW on the 13th, a 16.78% increase in one month. During the same period, Samsung Life Insurance rose 13.32% from 59,300 KRW to 67,200 KRW.

Funds are also flowing in. The Samsung Group fund's assets under management increased by 47.5 billion KRW in one month. Over three months, it grew by 155.3 billion KRW. Kim Dong-won, a researcher at KB Securities, said, "Next year, the semiconductor sector is expected to improve earnings due to a surge in mobile semiconductor demand and, for the first time in four years since 2017, replacement demand for server semiconductors, leading to price increases in DRAM and NAND." He added, "The target stock price is set at 80,000 KRW."

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