Samsung Electronics Loses 20 Trillion Won in Market Cap... "Still Heading to 100,000 Won"

Samsung Electronics' Market Cap Share Decreased by 1.21% Last Month
Average Daily Market Cap Reduced by About 20 Trillion Won Compared to January
Direct Impact from Increased Market Volatility
Positive Outlook from Securities Firms

[Asia Economy Reporter Hwang Junho] Last month, Samsung Electronics' market capitalization weight decreased by 1.21 percentage points compared to the previous month. In terms of amount, it dropped by about 20 trillion KRW. This was the result of foreign and institutional investors selling off amid increased volatility in the Korean stock market due to the rising trend of the US 10-year Treasury yield last month. However, the securities industry raised expectations by setting the year-end target stock price in the 100,000 KRW range.

On the 4th, the Korea Financial Investment Association announced that Samsung Electronics' market cap weight last month was 26.11%. This is a decrease of 1.12 percentage points compared to the previous month. It is the first time in three months since November last year that Samsung Electronics' market cap weight has decreased. Including Samsung Electronics, the total market cap weight of all Samsung Group stocks listed on the KOSPI also fell by 1.42 percentage points. This marks a decline for the first time in five months since September last year.

Last month, Samsung Electronics' average daily market capitalization also decreased by about 20.5194 trillion KRW compared to the previous month. The average daily market cap in January was 516.7742 trillion KRW, but it shrank to 496.2547 trillion KRW in February. The highest value in January was recorded on the 11th at 543 trillion KRW. However, last month, it dropped to 509 trillion KRW on the 25th.

Samsung Electronics is the leading stock in the KOSPI market and was a key driver of the stock market rise last year. However, as market volatility increased, investor sentiment weakened, and Samsung Electronics' stock price fell, causing its market cap weight to decrease as well. The biggest sellers of Samsung Electronics last month were foreign and institutional investors. Institutions sold a net 1.7688 trillion KRW, and foreigners sold a net 1.3207 trillion KRW. During the same period, individuals bought 3.0896 trillion KRW worth of shares.

On the 2nd, when the KOSPI index started with a sharp rise, the KOSPI was displayed on the electronic board in the dealing room of Hana Bank in Euljiro, Seoul. Photo by Mun Honam munonam@

However, the securities industry maintained the year-end target stock price in the 100,000 KRW range, citing Samsung Electronics' expected earnings improvement in the first quarter of this year. Hana Financial Investment raised its operating profit estimate for Q1 to 8.27 trillion KRW and increased the full-year operating profit estimate to 43.6 trillion KRW. However, considering the impact of the Texas cold wave in the US, it lowered the profit estimate for system semiconductors (non-memory fabless, foundry) to 1.16 trillion KRW and maintained the target stock price at 110,000 KRW per share for this year.

KB Securities also set the year-end target stock price at 105,000 KRW. Researcher Kim Dongwon of KB Securities said, "From Q2 this year, the parts business (semiconductors, displays) is expected to show clear earnings improvement due to rising DRAM prices and improved supply-demand for NAND flash, and the set business (smartphones, home appliances) demand recovery from Q1 is exceeding expectations," maintaining the target stock price.

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