Samsung Electronics Overcomes '50,000 Won Electronics' Crisis, Escapes Four-Day New Low Streak "Relief for Retail Investors" [Featured Stock]

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] Samsung Electronics, which had been pushed into the '50,000 won electronic' crisis by continuously hitting new lows, is rebounding in the early trading session on the 16th after 8 trading days. This marks an end to the four consecutive days of 52-week new lows.

As of 9:36 AM on the day, Samsung Electronics is trading at 61,600 won, up 1.48% from the previous day. The previous day's closing price was 60,700 won, the lowest in 1 year and 7 months since November 10, 2020. During the session, the price dropped to 60,200 won, threatening the 60,000 won level. Samsung Electronics' stock price had been declining recently due to concerns over economic slowdown, semiconductor industry uncertainties, and tightening fears caused by soaring inflation in the US. It had fallen for 7 consecutive trading days until the previous day and had hit new 52-week lows for four consecutive days from the 10th to the previous day.

The rebound on this day is interpreted as a result of the announcement from the US Federal Reserve's (Fed) Federal Open Market Committee (FOMC) regular meeting overnight. On the 15th (local time), the Fed raised the benchmark interest rate by 0.75 percentage points as expected at the June FOMC meeting. With uncertainty resolved, major indices on the New York Stock Exchange also closed higher overnight. Large semiconductor stocks such as Nvidia (4.36%), AMD (2.66%), and Micron (0.72%) also successfully rebounded.

Shinhan Financial Investment stated, "In the short term, the decline in valuation due to the rise in market discount rates is uncomfortable, but this has been largely reflected," adding, "Considering that macro uncertainties have been preemptively priced in and that this is an extremely constrained supply phase, Samsung Electronics' stock price is expected to enter a phase outperforming the KOSPI." They continued, "Considering the leading nature of stock prices, it is necessary to gradually shift focus to next year's industry conditions," and noted, "The conditions for a memory upcycle in 2023 are being formed, and demand is expected to normalize amid slow supply response."

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