Ants' Love for Samjeon... Betting 2 Trillion Won in July Despite 70,000-Won Stock Price

Net Purchases of 26 Trillion Won This Year Alone... Three Times Last Year's Total
Regular 'Surprise Earnings'... "Need New News Like M&A"

[Asia Economy Reporter Minwoo Lee] Despite Samsung Electronics' stock price struggling to rise above the 70,000 won level, individual investors have continued to show strong affection for "Samjeon" by purchasing around 26 trillion won worth of shares this year alone. This appears to be because they consider it the most stable investment option amid increasing market uncertainties.

According to the Korea Exchange on the 20th, individual investors have bought a total of 1.9933 trillion won worth of Samsung Electronics shares so far this month. This was the top net purchase among all stocks by individuals, significantly surpassing the second place SK Hynix (737.6 billion won). Compared to the previous month’s net purchase amount of Samsung Electronics by individuals, this represents a 49.9% increase. While the KOSPI index hovered around the 3,200 level, unlike last month when it reached an all-time high of 3,316.08 (June 25), investors steadily bought Samsung Electronics shares.

In particular, individual investor sentiment remained strong even as Samsung Electronics struggled to break out of the "70,000 won electronics" range. On the 7th, Samsung Electronics announced its preliminary Q2 consolidated earnings with sales of 63 trillion won and operating profit of 12.5 trillion won. This "surprise performance" significantly exceeded the market consensus operating profit forecast of 11 trillion won, but the stock price remained sluggish. On the day of the earnings announcement, the stock closed slightly down and fell more than 1% the following day. As of 9:05 a.m. that day, the price had dropped 0.76% from the previous day to 78,400 won. So far this month, Samsung Electronics closed in the 70,000 won range on 7 out of 13 trading days.

Nevertheless, individuals have purchased Samsung Electronics shares every month this year, including this month. As a result, the total net purchase amount has already surpassed 26 trillion won as of the previous day. Considering that individual investors’ total net purchase amount of Samsung Electronics last year was 9.5952 trillion won, this represents more than 2.5 times the buying momentum. It is interpreted that investors judged Samsung Electronics as the safest asset amid a sideways market and expanding uncertainties due to the resurgence of COVID-19. Researcher Yangjae Kim of KTB Investment & Securities explained, "Samsung Electronics is a company with extensive internalization of components from semiconductors to displays," adding, "With strong performance in the components sector and increased market share in the set business, it can be seen as a stable investment target amid expanding uncertainties."

However, there are opinions that factors beyond simply good earnings are needed for the stock price to rise to the next level. Since "surprise performances" have become routine, with Samsung Electronics exceeding market expectations for nine consecutive quarters, market expectations have risen. Kyungmin Kim, a researcher at Hana Financial Investment, predicted, "For the stock price to rise significantly, dramatic developments such as securing additional U.S. fabless semiconductor clients in the non-memory semiconductor sector or pursuing mergers and acquisitions (M&A) will be necessary."

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