Samsung Electronics Thrown by Foreigners, Bought by Individuals... 3 Trillion Won Net Purchase in One Month

[Asia Economy Reporter Kwon Jae-hee] Individual investors have been buying up Samsung Electronics shares in large quantities as the stock price fell to the "60,000 won electronic" level. This year, due to concerns over tightening and the Ukraine crisis, Samsung Electronics' stock price dropped to the 60,000 won range, which individual investors are interpreting as a buying opportunity at a low price.

According to the Korea Exchange on the 20th, over the past month (February 21 to March 18), individual investors in the domestic stock market have net purchased Samsung Electronics shares worth 3.1515 trillion won.

On the other hand, during the same period, foreigners and institutions net sold Samsung Electronics shares worth 1.9446 trillion won and 1.276 trillion won, respectively.

In other words, individual investors absorbed the shares sold off by foreigners and institutions.

In particular, on the 7th, when Samsung Electronics' stock price fell below the 70,000 won mark intraday for the first time in about four months, individuals net purchased shares worth 527.7 billion won in a single day, defending against further declines.

Since then, Samsung Electronics' stock price has fluctuated around the 70,000 won level, but individual investors have generally maintained a net buying stance.

As of the 18th, Samsung Electronics' stock price stood at 70,700 won, down 9.71% from the end of last year (78,300 won).

[Image source=Yonhap News]

In the market, while the sharp decline in Samsung Electronics' stock price since the beginning of the year is seen as having brought the price to a bottom range, there is a sentiment that a trend recovery requires more time.

Lee Seung-woo, Head of Research at Eugene Investment & Securities, explained, "Unlike SK Hynix, which is more closely linked to the memory market, Samsung Electronics needs good performance not only in memory but also in the smartphone business and foundry to see its stock price rise. Recently, smartphone issues such as the 'Game Optimization Service' (GOS) have been significant, and the foundry business has also produced results below expectations, disappointing investors."

He added, "Foreign investors view Korea's economic situation as vulnerable due to the impact of rising oil prices, making it difficult to meaningfully increase their holdings. It is judged that it will inevitably take time for factors such as oil price declines, resolution of smartphone concerns, and improvements in the foundry business to materialize."

Regarding the semiconductor market, which is expected to improve this year, he took a conservative view, citing reduced consumer spending power due to rising oil prices and shifts in consumption patterns during the post-pandemic normalization process.

Song Myung-seop, a researcher at Hi Investment & Securities, explained, "Since 2018, Samsung Electronics' stock price has not moved in the same direction as the semiconductor market's conditions and prices. Because the semiconductor market lags the economic leading indicators by about six months, macro factors such as the US manufacturing index have a strong influence on the stock price."

He explained that future economic conditions will be a key variable for Samsung Electronics' stock price to receive a high valuation.

Researcher Song said, "The US is in a situation where it has no choice but to raise interest rates due to inflation, while China is increasing liquidity through reserve requirement ratio cuts and easing COVID policies. We need to watch whether the upward or downward pressure will be greater."

He added, "Buying at the bottom level around the previous low is valid, but whether the stock price, which is moving within a certain range now, will break through the upper limit depends on waiting for indicators that confirm economic demand in the second half of the year or later."

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