Samsung Electronics, Capturing Individuals Without Rest...

Individual Investors Net Buy Over 300 Billion Won for Two Consecutive Days
Stock Price Continues to Decline

Despite the concentrated net buying by individual investors toward Samsung Electronics, the stock price continues to struggle day after day.

According to the Korea Exchange on the 21st, the net buying volume of Samsung Electronics by individuals on the 18th reached 397.7 billion KRW. Following 348.1 billion KRW on the 17th, net buying in the 300 billion KRW range continued for two consecutive days. Individuals also accumulated Samsung Electronics shares for five consecutive trading days from the 9th to the 15th.

However, the stock price has not been able to gain strength. Samsung Electronics' stock price rose to the 80,000 KRW level on the 27th of last month and increased for five consecutive trading days but failed to break above the early 80,000 KRW range. Even on the 17th and 18th, when net buying continued, the stock price fell by 1.10% and 0.49%, respectively. Between the 4th and 14th, the stock price declined on five out of seven trading days. As of 10:16 AM on the day, the stock price had fallen below the 80,000 KRW mark, recording 79,800 KRW.

Strong selling pressure from foreigners and institutions acted as a downward force on the stock price. On the 17th and 18th, foreigners conducted net sales worth 625.6 billion KRW, and institutions also net sold 120.1 billion KRW. Following the Federal Open Market Committee (FOMC) meeting on the 16th (local time), which hinted at an interest rate hike, net selling by institutions and foreigners intensified.

Currently, the consensus target price for Samsung Electronics in the securities industry is around 103,000 KRW. Securities firms expect Samsung Electronics to deliver results exceeding market expectations in the second quarter as well. However, opinions diverge due to the imbalance in DRAM supply and demand. Lee Soon-hak, a researcher at Hanwha Investment & Securities, maintained a target price of 105,000 KRW, stating that "concerns about an earnings peak in the second half are excessive." He added, "DRAM suppliers are reducing mobile production allocations due to expanding server demand, and inventory levels by application remain low, so the possibility of switching to oversupply is limited."

On the other hand, Doh Hyun-woo, a researcher at NH Investment & Securities, recently lowered his target price from 110,000 KRW to 95,000 KRW, forecasting that "due to favorable DRAM supply and demand, various companies including those in China plan to increase production, and the supply increase is expected to burden supply and demand next year." Additionally, factors such as weakened demand for smartphones and TVs due to COVID-19 and delays in developing the latest processes compared to competitors (14nm DRAM) were cited as reasons for the downward revision of the target price.

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