Ants' Love for Samsung Electronics Remains Strong This Year as Well

Individuals Net Bought 24 Trillion KRW on KOSPI in First Half
Returns Lower Than Last Year

[Asia Economy Reporter Minji Lee] In the first half of this year, the stocks preferred by individual investors were large-cap stocks represented by Samsung Electronics, just like last year. However, the returns of the top net purchase stocks significantly decreased compared to last year.

According to the Korea Exchange on the 27th, Samsung Electronics ranked first in net purchases by individuals this year. Of the 53.436 trillion KRW net purchase amount by individuals in the KOSPI market this year, about 55%, or 23.8172 trillion KRW, flowed into Samsung Electronics.

Following were Samsung Electronics Preferred Shares (4.0178 trillion KRW), SK Hynix (2.751 trillion KRW), Hyundai Mobis (2.704 trillion KRW), Kakao (1.9138 trillion KRW), LG Electronics (1.595 trillion KRW), Hyundai Motor (1.4788 trillion KRW), Samsung SDI (1.3103 trillion KRW), Samsung Electro-Mechanics (1.264 trillion KRW), and NAVER (1.078 trillion KRW). All top 10 net purchase stocks belonged to the KOSPI 200 large-cap stocks. Last year, among the top 10 net purchase stocks by individuals, nine belonged to the KOSPI 200 except for Celltrion Healthcare.

Six stocks including Samsung Electronics, Hyundai Motor, NAVER, Kakao, and SK Hynix ranked in the top 10 both last year and this year. This indicates that individual investors' preferences for semiconductors, automobiles, and internet sectors have been maintained since last year.

However, there was a difference in returns compared to last year. The average net purchase price per share by individuals for Samsung Electronics (calculated by dividing net purchase transaction amount by net purchase volume) was about 83,400 KRW. This is 2.2% higher than the closing price on the 25th, which was 81,600 KRW. Investors who bought Samsung Electronics shares and still hold them are likely experiencing an average loss.

Besides Samsung Electronics, four of the top 10 net purchase stocks, including Samsung Electronics Preferred Shares (-0.8%), Hyundai Mobis (-5.2%), and Samsung Electro-Mechanics (-3.1%), recorded negative returns. This contrasts with last year when only SK (-3.9%) among the top 10 net purchase stocks by individuals showed negative returns. The average return in the first half was also lower than last year's. The six stocks with positive returns among the top 10 net purchase stocks by individuals had an average return of 5.6%, which is lower than last year's 36.1% from nine stocks.

The decline in returns is attributed to the changing nature of the stock market compared to last year. Last year, semiconductor large-cap stocks preferred by individuals such as Samsung Electronics and SK Hynix showed strong performance, resulting in satisfactory returns. However, in the first half of this year, as the economic recovery progressed, sector rotation based on macro indicators made it difficult for individuals to respond effectively.

However, since the beginning of this month, Kakao's stock price has risen by 25.6%, and large-cap stocks preferred by individuals such as NAVER (13.1%) and Samsung SDI (11.9%) are showing signs of revival, raising expectations for a recovery in returns. There are also opinions that increasing the purchase scale of Samsung Electronics would be beneficial. Samsung Electronics' second-quarter earnings are expected to grow by 17% in sales to 62 trillion KRW and by 42% in operating profit to 11.6 trillion KRW compared to the same period last year. The operating profit is estimated to exceed the market expectation of 10.3 trillion KRW. Researcher Agyujin from DB Financial Investment analyzed, “With strong mobile demand already driving a sharp price increase in DRAM, NAND prices are also rebounding after the second quarter due to increased memory orders from data center companies.”

Researcher Agyujin added, “Although Samsung Electronics' stock price is currently sideways due to global tapering issues and memory market peak concerns, earnings estimates will continue to be revised upward thanks to strong performance in the set business and a full-fledged rebound in the memory market.”

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