Despite New Lows, Retail Investors Continue Buying Samsung Electronics

"60,000 Won Electronics' Position Also Precarious
Credit Loans Increased 43% This Year
Advice to 'Beware of Premature Bottom Calls'"

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Samsung Electronics, the leading stock in the KOSPI, has hit new lows for three consecutive days, putting its "60,000 won stock" status at risk, while individual investors have been steadily continuing their purchases. In particular, concerns are growing as margin buying, which involves borrowing money to invest, is also increasing.

According to the Korea Exchange on the 15th, Samsung Electronics closed at 61,900 won on the previous day (14th), down 0.32% from the previous trading day. During the trading session, Samsung Electronics fell to 61,100 won, hitting a new 52-week low once again. Samsung Electronics recorded new lows for three consecutive trading days, closing at 63,800 won on the 10th.

The decline in Samsung Electronics' stock price is interpreted as a result of the inflation shock originating from the U.S., rather than the company's fundamentals such as semiconductor industry outlook or earnings. This is confirmed by the fact that a total of 231 stocks in the KOSPI market touched intraday new lows.

Experts advise caution against premature bottoming theories, but individual investors seem to perceive the stock price as the bottom and continue their buying momentum. Individual investors have purchased a total of 2.5074 trillion won worth of Samsung Electronics shares in the past month (May 15 to June 14). In contrast, foreigners and institutions sold net amounts of 2.0927 trillion won and 467.6 billion won, respectively, during the same period.

Margin buying, which involves borrowing money to invest, has also surged. Samsung Electronics' margin loans increased by about 43%, from 8.04 million shares to 11.49 million shares this year alone. This contrasts with the overall market margin loans, which decreased by 7%, from 23.3 trillion won to 21.7 trillion won during the same period.

Kim Hak-gyun, Head of Research Center at Shin Young Securities, advised, "The strategy of 'holding' quality stocks you own is valid, but it is unreasonable to prematurely perceive the bottom," adding, "You should increase your cash holdings."

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