Samsung Electronics Breaks a Sweat at the Threshold of '80,000 Won Electronics'

Foreigners Sell 4.1276 Trillion This Month
Hope Rises on Reviving Institutional Buying Pressure

[Asia Economy Reporter Song Hwajeong] Samsung Electronics, which has fallen to the '70,000 won level,' is struggling to recover to 80,000 won. Continuous foreign selling is repeatedly holding back the stock at the 80,000 won threshold. However, recently, institutional investors have started buying, drawing attention to whether the stock price will regain its upward momentum.

As of 9:20 a.m. on the 26th, Samsung Electronics was trading at 80,200 won, up 300 won (0.38%) from the previous day. It has maintained a slight upward trend for two consecutive days. During the trading session, it continuously touched 80,000 won, but it has repeatedly failed to recover above 80,000 won at the closing price. Samsung Electronics fell below 80,000 won at the close on the 13th and has since recovered above 80,000 won twice but has not sustained the recovery.

The persistent foreign selling pressure continues to block the path for the stock price to rise. Foreign investors have sold Samsung Electronics every day this month except for three days. The total selling volume during this period reached 4.1276 trillion won. Foreign investors have net sold 8.9198 trillion won in the KOSPI this month, with Samsung Electronics accounting for nearly half of that amount.

Brokerages are also lowering their target prices for Samsung Electronics. Shinhan Financial Investment lowered Samsung Electronics' target price from 120,000 won to 105,000 won, reflecting concerns about rising interest rates and tapering (asset purchase reduction) in the second half of the year. Hi Investment & Securities lowered it from 100,000 won to 92,000 won, and Hana Financial Investment lowered it from 111,000 won to 101,000 won. Song Myungseop, a researcher at Hi Investment & Securities, explained, "Since the global liquidity growth rate, which has accompanied Samsung Electronics' valuation multiples, and the U.S. ISM manufacturing and services indices are expected to decline compared to the same period last year, a downward adjustment of the historically highest price-to-book ratio (PBR) of 2.2 times, which was applied in calculating Samsung Electronics' target price, is inevitable. Additionally, as a slowdown in the semiconductor market and Samsung Electronics' earnings improvement momentum is expected next year, a downward revision of the target price is necessary."

In a situation where conditions for a rebound are unfavorable, it is positive that institutional investors have recently started buying Samsung Electronics. Institutions have been the largest net buyers of Samsung Electronics in the past week, purchasing 409.6 billion won. Institutions, which had shown a selling bias toward Samsung Electronics this year, have started buying as the stock price fell below 80,000 won.

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