As Samsung Electronics Hits '60,000 Won', Retail Investors Flee... Individual Sellers Outnumber Buyers in July

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] As Samsung Electronics, the undisputed number one stock by market capitalization, returned to the 60,000 KRW range this month, so-called "ant" investors have started selling off their Samsung Electronics shares.

According to the Korea Exchange on the 24th, individual investors net sold 143.4 billion KRW worth of Samsung Electronics common stock from the 1st to the 22nd of this month. Previously, individuals had purchased 15.1606 trillion KRW worth of Samsung Electronics shares from the beginning of this year until the end of last month, which accounts for 72% of the 21.0927 trillion KRW net buying amount by individuals in the KOSPI market during the same period.

As Samsung Electronics' stock price rebounded and rose to the 60,000 KRW range starting early this month, individual investors appear to be selling their holdings. On the most recent trading day, the 22nd, Samsung Electronics closed at 61,300 KRW, marking a 7.72% increase in stock price since the beginning of the month. The stock price had been declining throughout the first half of the year due to global economic recession concerns and semiconductor industry instability. The price, which was 78,300 KRW at the end of last year, fell to as low as 55,700 KRW during trading on the 4th of this month.

However, it is estimated that many individual investors who recently sold Samsung Electronics shares did so at a loss rather than realizing profits. The average purchase price, estimated by dividing the net purchase amount by the net purchase quantity over the six months of the first half of this year, is approximately 67,356 KRW. Considering that the buying spree by individuals began when the stock price surpassed 90,000 KRW early last year, it appears that many investors holding the stock have incurred losses.

Market analysts have assessed Samsung Electronics as still an attractive investment from a long-term perspective. Dongwon Kim, a researcher at KB Securities, stated, "Recently, Samsung Electronics' stock price fell to a historical valuation low at a price-to-book ratio (PBR) of about 1.1 times and has since started to rebound," adding, "We believe the stock price has already passed the bottom, and from a long-term investor's perspective, Samsung Electronics' stock price, having passed the price floor, will stand out as an attractive investment opportunity."

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