LG Chem and Samsung SDI 'Hesitate'... Yet Retail Investors Keep Buying

Downward Trend This Month... Samsung SDI Falls Below 600,000 Won After 50 Days
Individual Investors Keep Buying... Betting on Electric Vehicle Market Expansion Prospects

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[Asia Economy Reporter Minwoo Lee] Leading domestic secondary battery stocks such as LG Chem and Samsung SDI continue to underperform. Nevertheless, individual investors seem to be steadily buying in anticipation of growth in the electric vehicle market.

On the 24th, LG Chem, the 'blue-chip' of domestic secondary batteries, opened down 1.13% from the previous day at 875,000 KRW. This contrasts with the atmosphere earlier this month when the price exceeded 1,000,000 KRW. Since recording 1,028,000 KRW on the 5th, the stock has steadily declined, falling about 14% until the previous day. Dropping to the 880,000 KRW range, it has returned to the price level seen at the beginning of the year.

Samsung SDI also failed to escape sluggishness. Although it hit an intraday record high of 818,000 KRW on the 17th, it has since been on a downward trend. Right after the market opened that day, it fell to 699,000 KRW, breaking below the 700,000 KRW mark. It is the first time in about 50 days since the 7th of last month that Samsung SDI's stock price has dropped to the 600,000 KRW range.

The sluggishness of these two stocks appears to be influenced by the weakening investor sentiment toward electric vehicles, following Tesla's poor performance in the U.S. stock market. Tesla, which reached an all-time high of $900.4 on the 25th of last month, has declined consecutively over the past month, closing at $698.84 on the 23rd (local time).

Despite recent underperformance, individual investors have been steadily buying leading secondary battery stocks. LG Chem and Samsung SDI ranked 2nd (342.7 billion KRW) and 3rd (293.6 billion KRW), respectively, in net purchases by individual investors over the week from the 17th to the previous day. This buying trend seems driven by expectations of a sharp increase in electric vehicle sales this year.

Gojongwoo, a researcher at NH Investment & Securities, explained, "The number of new electric vehicle models to be released this year is expected to be 322, and the electric vehicle market size is projected to reach 4.2 million units, representing growth of 70% and 42% respectively compared to the previous year." He added, "With strengthened carbon dioxide emission regulations, operation of electric vehicle production platforms, and electric vehicle promotion policies, the electric vehicle market is inevitably set to expand this year."

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