"Goodbye 50,000 Samsung Electronics"…Retail Investors Begin 'Samjeon Escape'

Securities Firms Still Maintain 'Buy Recommendation'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] The exodus of retail investors from Samsung Electronics is gaining momentum. Individual investors, who had been the biggest buyers of Samsung Electronics throughout the first half of this year, suddenly started selling off Samsung Electronics shares last month. In contrast, foreign investors stopped their selling streak by mid-year and turned to buying Samsung Electronics stocks.

On the 1st, Asia Economy analyzed the trading trends of individual investors from July 1 to 29 and found that individuals sold off Samsung Electronics shares worth 116.3 billion KRW last month. This ranks Samsung Electronics 2541st among the top net purchase stocks by individuals. Considering that there are 2,549 listed stocks combined in the KOSPI, KOSDAQ, and KONEX markets as of July 29, Samsung Electronics ranked 9th from the bottom among individual investors' preferred stocks.

With individual investors sharply shifting to selling Samsung Electronics in July, there is speculation that the so-called ‘Samsung Electronics escape’ has begun in earnest. Throughout the first half of this year, Samsung Electronics never dropped from the top spot in net purchases by individuals. Even on a monthly basis, Samsung Electronics was the number one net purchase stock for individuals from January through June. After Samsung Electronics’ stock price sharply fell below the 60,000 KRW mark in June and partially recovered in July, individuals appear to have started selling.

The Samsung Electronics shares sold by individuals were picked up by foreign investors. Foreign investors bought Samsung Electronics shares worth 546.1 billion KRW in July, marking the largest net purchase amount by foreigners during this period. Foreign investors also sharply switched to a buying stance. Samsung Electronics was the top net sold stock by foreigners in the first half of this year.

The outlook for Samsung Electronics in the second half of this year is not very optimistic. This is due to global economic uncertainties such as the ongoing trend of interest rate hikes worldwide, coupled with expected weak IT demand. For this reason, four securities firms have lowered their target prices for Samsung Electronics following the Q2 earnings announcement. Kiwoom Securities analyst Park Yooak said, "The decline in demand for mobile and PCs has exceeded expectations, leading to semiconductor inventory adjustments by clients, and the previously strong server demand is likely to decline from Q4 this year through Q1 next year," adding, "While we still see a high possibility of DRAM market improvement next year, investors should be prepared for another round of price corrections." Shin Young Securities analyst Seo Seungyeon also noted, "The memory inventory burden observed due to weak front-end demand is unlikely to be absorbed within this year," and "With falling selling prices, a company-wide quarterly earnings decline is expected in the second half."

However, advice to take a long-term view on Samsung Electronics has also been offered. From a long-term perspective, it remains an attractive option. The investment opinions from securities firms uniformly recommend ‘buy’ for Samsung Electronics. Hi Investment & Securities analyst Song Myungseop said, "Based on the previous low price, Samsung Electronics’ downside risk is estimated at 0-15%, with an upside potential of 33%," advising, "From a long-term investor’s standpoint, the current price still allows for dollar-cost averaging purchases whenever the stock price falls." KB Securities analyst Kim Dongwon also predicted, "From the second half of next year, gradual supply-demand improvements in the memory semiconductor market are expected," and "From a long-term investor’s perspective, Samsung Electronics’ stock price, having passed the price bottom, will emerge as an attractive investment destination."

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